U.S. Treasuries slump ahead of January retail sales data, FOMC Chair Powell’s speech

The U.S. Treasuries slumped during afternoon session Monday ahead of the country’s retail sales data for the month of January, scheduled to be released today by 12:30GMT. Also, the Federal Open Market Committee’s (FOMC) Chair Jerome Powell, is scheduled to deliver a keynote speech today at 23:00GMT, besides, the short-term 3-year note auction, at 17:00GMT, which will provide further direction to the debt market.

The yield on the benchmark 10-year Treasury yield jumped nearly 2-1/2 basis points to 2.648 percent, the super-long 30-year bond yields surged nearly 3 basis points to 3.037 percent and the yield on the short-term 2-year traded 1 basis point up at 2.473 percent by 12:00GMT.

The US economic diary contains a number of important reports this week, beginning this afternoon with retail sales data for January – of particular interest in light of the unusual slump recorded in December. The business inventory report for December is also released that day.

On Tuesday, attention will turn to inflation, with the release of the February CPI report. PPI figures for the same month will follow on Wednesday. However, most interest on Wednesday will be centered on the advance durable goods orders report for January, especially given the further disappointing decline in core capex orders that was recorded in December. Construction spending data for January will also be released on Wednesday, Daiwa Capital Markets reported.

On Thursday markets will receive the new home sales report for January and import prices for February. On Friday the IP report for February and New York Fed manufacturing survey for March will cast light on conditions in the factory sector.

That day will also bring the preliminary results of the University of Michigan’s consumer survey for March and the JOLTS report for January. In the bond market, a busy week will see the US Treasury auction 3-year notes today, 10-year notes tomorrow and 30-year bonds on Wednesday, the report added.

Meanwhile, the S&P 500 Futures edged tad lower to 2,767.62 by 12:10GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -4.40 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex