U.S. Treasuries slump as trade war tensions start to cool down; eyes on March ADP non-farm employment change

The U.S. Treasuries slumped Tuesday as market concerns about the global growth outlook due to escalating trade tensions between the US and China are rising while the threat of government regulation has fuelled worries over the outlook of technology shares. 

Also, FOMC member Brainard’s speech, due today at 20:30GMT will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries jumped nearly 3 basis points to 2.75 percent, the super-long 30-year bond yields surged close to 2-1/2 basis points to 2.99 percent and the yield on the short-term 2-year traded 2 basis points higher at 2.26 percent by 11:00GMT.

In the US, March auto sales figures will be released later today. But the week’s key report will obviously be Friday’s employment report for March. Another solid jobs gain seems likely, although Daiwa America’s chief economist Mike Moran forecasts an increase of NFPs of 150k, some way below the current Bloomberg consensus of 185k.

Nevertheless, a restrained reading on the size of the labor force after two strong months could still lead to a drop in the unemployment rate to 4.0 percent. And, also in line with the consensus, Mike looks for the tight labor market to lead to an increase of 0.3 percent in average hourly earnings.

Meanwhile, the S&P 500 Futures rose 0.45 percent to 2,586.50 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 50.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

Lastly, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest