U.S. Treasuries remain resilient ahead of Trump-Putin Summit, June retail sales

The U.S. Treasuries remained resilient on Monday as investors wait to watch the summit between President Donald Trump and his Russian counterpart Vladimir Putin, scheduled to be held later today. Also, the country’s retail sales data for the month of June, due to be released today by 12:30GMT, will be eyed upon for extra insights into the debt market.

The yield on the benchmark 10-year Treasuries remained tad higher at 2.83 percent, the super-long 30-year bond yields hovered around 2.93 percent and the yield on the short-term 2-year traded 1/2 basis point higher at 2.58 percent by 11:15GMT.

The main event in the US this week will arguably be Fed Chairman Jerome Powell’s semi-annual testimony to Congress, the first leg of which takes place before the Senate Banking Committee tomorrow. The second leg before the House Financial Services Committee will follow on Wednesday, when the Fed’s Beige Book will also be released. The Q2 corporate reporting season will also begin to heat up with 7 DJI and 59 S&P500 companies scheduled to state their earnings.

Turning to the US economic data, the advance retail sales report for June and the New York’s Fed’s manufacturing survey for July are due later today. Tomorrow we will receive the IP report for June and the NAHB housing index for July.

On Wednesday attention turns to the housing market with the housing starts and permits report for June. The Philadelphia Fed’s manufacturing survey for July and the Conference Board’s leading index for June are released on Thursday. In the bond market the US Treasury will auction 10-year TIPS on Thursday.         

Meanwhile, the S&P 500 Futures slipped 0.06 percent to 2,801.50 by 11:25GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at -90.30 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex