The U.S. 10-year Treasuries traded flat Friday, in a muted session that witnessed data of little economic significance. Today’s focus will be personal income and spending data for May. Income should be boosted by firm job growth, a solid increase in average hourly earnings, and supportive rental and interest income too.
The yield on the benchmark 10-year Treasuries rose 1/2 basis point to 2.85 percent, the super-long 30-year bond yields hovered around 2.97 percent and the yield on the short-term 2-year also traded nearly 1 basis point higher at 2.52 percent by 11:10GMT.
A strong lift in retail sales suggests that personal spending should post a decent advance despite a drop in sales of new vehicles. But the combination of a moderate core CPI reading and a soft healthcare PPI reading suggests that the core PCE deflator will rise by only about 0.2 percent m/m, but base effects mean that annual inflation may still edge up from last month’s 1.8 percent y/y.
Meanwhile, the S&P 500 Futures rose 0.26 percent to 2,726.50 by 11:15GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 85.25 (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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