U.S. Treasuries remain flat ahead of 10-year auction, Trump’s speech closely eyed

The U.S. Treasuries remained flat Tuesday as investors remain cautious ahead of the 10-year note auction, besides, the upcoming speech by the United States President-elect Donald Trump scheduled to be held Wednesday.

The yield on the benchmark 10-year Treasury note remained flat at 2.38 percent, the super-long 30-year bond yield also traded steady at 2.96 percent while the yield on short-term 2-year note moved around 1/2 basis point higher to 1.19 percent by 12:25 GMT.

Markets now look ahead to a lighter flow of data in the week ahead, highlighted by producer prices, retail sales, business inventories and University of Michigan consumer sentiment releases on Friday.

Fed Funds futures discount a 24 percent chance of a Fed rate hike in March [according to CME calculations using late Friday data], which is up from 80 percent the day before Friday's US employment report but about the same as on 3-4 January, while still below pricing on 15 December.

Meanwhile, the S&P 500 Futures traded almost flat, 0.25 points higher at 2,265.25 by 12:30 GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at 21.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex