U.S. Treasuries remain flat ahead of 30-year auction, initial jobless claims

The U.S. Treasuries remained flat Wednesday as investors remain geared up to witness a host of speeches by the Federal Open Market Committee (FOMC) members by the end of this week. Further, the country’s 30-year auction, due late tomorrow, besides, expectations of a rise in the initial jobless claims, added further sluggishness to the safe-haven market.

The yield on the benchmark 10-year Treasury, hovered around 2.15 percent, the super-long 30-year bond yields also traded flat at 2.73 percent and the yield on short-term 2-year note remained almost steady at 1.35 percent by 11:40GMT.

US Treasury yields were modestly higher in European trade following comments by New York Fed President William Dudley that the country’s inflation will gradually rise alongside wages as labour market conditions continue to improve.

In FX markets, higher US Treasury yields supported USD while GBP weakened amid uncertainty over domestic politics and the UK government’s Brexit strategy as formal Brexit negotiations started on Monday.

Lastly, US current account figures for the first quarter along with revisions to the series are also due. However, this morning's scheduled remarks from Fed Vice Chair Fischer will be made at a conference on macro-prudential issues, and so might not have clear messages on rates.

Meanwhile, the S&P 500 Futures traded 0.17 percent lower at 2,433.25 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 30.33 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex