U.S. Treasuries jump ahead of May consumer price inflation data, 10-year auction

The U.S. Treasuries jumped during Wednesday’s afternoon session, ahead of the country’s consumer price index (PPI) data for the month of May, scheduled to be released today by 12:30GMT, and the benchmark 10-year Note auction, also due later today.

The yield on the benchmark 10-year Treasury yield suffered 1-1/2 basis points to 2.126 percent, the super-long 30-year bond yields slipped 1 basis point to 2.606 percent and the yield on the short-term 2-year plunged 3 basis points to 1.891 percent by 11:35GMT.

Of course, in the US, all eyes today will also be on CPI inflation figures for May. With energy prices having stabilised after rising sharply in April and food prices, overall consumer prices are expected to have risen just 0.1 percent m/m in May, the smallest monthly rise since January, Daiwa Capital Markets reported.

So, the annual rate of headline CPI is expected to have edged back below 2 percent y/y. Core inflation, meanwhile, is likely to have moved sideways at 2.1 percent y/y. Today will also bring the Federal monthly budget statement, while the Treasury will sell 10-year notes, the report added.

Meanwhile, the S&P 500 Futures traded tad 0.24 percent lower at 2,879.62 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 39.22 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex