U.S. Treasuries jump in silent trade ahead of 10-year auction, initial jobless claims

The U.S. Treasuries traded mildly on the upside Tuesday as investors wait to watch the country’s 10-year auction, scheduled to be held on July 20. Also, the release of initial jobless claims on the same day shall add further clarity and direction to the bond market.

The yield on the benchmark 10-year Treasury, slumped 1-1/2 basis points to 2.29 percent, the super-long 30-year bond yields slipped 1 basis point to 2.88 percent while the yield on short-term 2-year note traded flat at 1.36 percent by 11:50GMT.

Politics continue to dominate in the US, with the overnight collapse in the Senate of the Republican initiative to replace Obamacare having a knock-on effect on the dollar, which took another step down against the other major currencies leaving DXY at a new ten-month low.

Global equity markets retreated from recent highs in European trade on Tuesday, USD extended its recent losses and US government bond yields remained in a downward trend amid increased uncertainty over whether the US administration will manage to implement key election promises including tax reforms and sizable infrastructure spending.  

Housing market data include the July NAHB indices (today) and June housing starts and building permits figures (Thursday). And June import prices, May TIC capital flows (both Tuesday) and the June Conference Board leading indicators and usual weekly claim figures (both Thursday) are among other releases. In the bond markets, the Treasury will sell 10-year TIPS.

Meanwhile, the S&P 500 Futures traded 0.08 percent lower at 2,456.75 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -94.75 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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