U.S. Treasuries plummet ahead of initial jobless claims, FOMC members’ speeches

The U.S. Treasuries plummeted Thursday as investors wait to watch the country’s initial jobless claims, scheduled for release today by 13:30GMT. Also, a host of FOMC members’ speeches is awaited through the day, which will provide further direction to the debt market.

The yield on the benchmark 10-year Treasuries jumped 2-1/2 basis points to 2.36 percent, the super-long 30-year bond yields climbed nearly 2 basis points to 2.79 percent and the yield on short-term 2-year note traded 2-1/2 basis points higher at 1.71 percent by 11:00GMT.

In the US, the focus will be on October industrial production figures, expected to show an increase in production of around 1/2 percent m/m, which would be the second strongest rise so far this year. Meanwhile, export and import price data for the same month as well as the latest Philadelphia Fed business outlook survey will also be of interest to financial markets.

The US House of Representatives is scheduled to vote on its tax reform plan later today while the Senate continues to make adjustments on its own plan with an intention to vote by December 12. Meanwhile, shrugging off Wall Street’s losses overnight, risk appetite seems to be stabilizing after the recent flare-up of risk aversion.

In FX markets, the USD gained some ground supported by Wednesday’s positive US data, but still below recent highs. The US yield curve continued to flatten while Eurozone bond markets retained a positive tone in European trade retracing just a part of yesterday’s hefty gains.     

Meanwhile, the S&P 500 Futures traded 0.32 percent up at 2,573.00 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -4.38 (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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