U.S. Treasuries rise ahead of December trade balance, PPI data; FOMC speeches also eyed

The U.S. Treasuries rose during late afternoon session Tuesday, ahead of the country’s trade balance and producer price index (PPI) data for the month of December, scheduled to be released today by 13:30GMT.

Also, FOMC members Kashkari, George and Kaplan are due to deliver their respective speeches later in the day which shall provide further direction to the debt market.

The yield on the benchmark 10-year Treasuries slumped 2-1/2 basis points to 2.686 percent, the super-long 30-year bond yields also suffered by 2-1/2 basis points to 3.036 percent and the yield on the short-term 2-year slipped 1 basis point to 2.524 percent by 10:40GMT.

Wednesday will bring the Fed’s latest Beige Book, capital inflows data and the NAHB housing index, with weekly jobless claims and the Philly Fed index due the following day. Friday, meanwhile, will bring December’s industrial production report and the preliminary University of Michigan consumer sentiment survey for January, Daiwa Capital Markets reported.

December’s retail sales and business inventories data (Wednesday), as well as housing starts figures (Thursday) risk postponement due to the government shutdown. In the markets, the Treasury will sell 10-year TIPS on Thursday.    

Meanwhile, the S&P 500 Futures fell nearly 1 percent to 2,569.88 by 11:45GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 54.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex