U.S. Treasuries plunge as investors await 10-year auction, FOMC members Evans and Bullard’s speeches

The U.S. Treasuries plunged Wednesday ahead of the 10-year auction, scheduled to be held today at 18:00GMT. Also, FOMC members Evans and Bullard are scheduled to make their keynote speeches later in the day for further direction in the debt market.

The yield on the benchmark 10-year Treasuries jumped nearly 4-1/2 basis points to 2.58 percent, the super-long 30-year bond yields surged 4-1/2 basis points to 2.93 percent and the yield on the short-term 2-year traded nearly 2 basis points higher at 1.98 percent by 11:20GMT.

In the US, the most important data releases are out on Friday, when December CPI and retail sales figures are due. CPI and core CPI are both expected to rise 0.2 percent m/m. If so, the annual pace of CPI inflation would inch back down slightly having risen to 2.2 percent y/y in November while the annual core rate would remain at 1.7 percent y/y.

In addition, today brings import and export price indices for that month as well as wholesale trade figures for November. Also, Chicago and Dallas Fed Presidents Evans and Kaplan will be speaking publicly Federal budget (Thursday) and business inventories (Friday). Lastly, a number of the FOMC members are scheduled to make public appearances in the coming week, including Dudley, Williams, Evans, and Kashkari.

Meanwhile, the S&P 500 Futures traded 0.41 percent lower at 2,742.25 by 11:25GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 133.52 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

Lastly, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest