U.S. Treasuries jump ahead of FOMC’s monetary policy meeting

The U.S. Treasuries jumped during Monday’s afternoon session, ahead of the Federal Reserve’s monetary policy meeting, scheduled to be concluded on July 31 by 23:30GMT, where the federal funds rate is widely expected to be slashed by 25 basis points to 2.00-2.25 percent, accompanied by Chair Jerome Powell’s detailed speech.

The yield on the benchmark 10-year Treasury yield slumped 2-1/2 basis points to 2.056 percent, the super-long 30-year bond yields plunged nearly 3 basis points to 2.574 percent and the yield on the short-term 2-year also traded nearly 3 basis points down at 1.842 percent by 11:20GMT.

All eyes this week will of course be on the conclusion of the FOMC meeting on Wednesday, where the FFR target range is widely expected to be cut by 25bps to 2.00-2.25 percent. But attention will also be on the Fed’s accompanying policy statement and Chair Powell’s press conference for insights into the near-term policy path, Daiwa Capital Markets reported.

"Certainly, we would expect a relatively dovish assessment, underscoring the downside risks to the outlook from abroad and concerns that US inflation will remain below target for far longer than originally anticipated, therefore leaving the door open for further cuts this year," the report added.

Meanwhile, the S&P 500 Futures remained flat at 3,024.62 by 11:25GMT.