U.S. Treasuries jump following Trump’s Fed comments, global sell-off; September CPI data in focus

The U.S. Treasuries climbed Thursday following global political and trade tensions amid President Donald Trump’s criticism of the Fed’s interest rate hikes. Ahead of a campaign rally, the President told reporters that the Fed “has gone crazy”, indicating its rate hike policy.

The yield on the benchmark 10-year Treasuries plunged nearly 7 basis points to 3.157 percent, the super-long 30-year bond yields slumped 6 basis points to 3.34 percent and the yield on the short-term 2-year traded nearly 4 basis points lower at 2.844 percent by 10:00GMT.

Later in the day, reacting to the stock market’s decline, Trump told Fox News that his tariffs on China were not hurting the economy but rather the problem was the Fed. According to Trump “The Fed is going wild. They’re raising interest rates and it’s ridiculous”.

Further, aside from the usual weekly jobless claims figures, the data focus today will be the latest CPI figures for September. Consumer prices are expected to have risen 0.2 percent m/m last month, to leave the y/y rate moderating 0.3ppt to 2.4 percent, Dawia Capital Markets reported

Meanwhile, the S&P 500 Futures traded 0.68 percent lower at 2,761.75 by 10:05GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -113.25 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex