U.S. Treasuries remain flat ahead of FOMC members’ speech

The U.S. Treasuries remained flat Friday ahead of the Federal Open Market Committee (FOMC) members James Bullard and Neel Kashkari’s speech, scheduled to be held later in the day.

The yield on the benchmark 10-year Treasury remained flat at 2.41 percent, the super-long 30-year bond yields hovered around 3.03 percent and the yield on short-term 2-year note traded steady at 1.28 percent.

Financial markets registered a slight increase in risk aversion following the US Administration’s failure to pass the health care bill in Congress on Friday. Further, equities extended their declines, especially the banking sector, as expectations of reflationary policy faltered. The movement in US assets dragged down global stocks and pushed up sovereign bond prices.

Reacting to today’s modest improvement in risk sentiment, US Treasuries edged lower but their losses were limited. Lastly, next week’s manufacturing PMI will remain vital in deciding the future movements in the bond market.

Meanwhile, the S&P 500 Futures fell 0.17 percent or 4.00 points to 2,360.50 by 12:10GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -31.91 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex