U.S. Treasuries slump despite lower-than-expected September; FOMC members’ speeches in focus

The U.S. Treasuries continued to plunge Friday despite a lower-than-expected CPI report, released late yesterday. Today’s FOMC speeches by members Evans and Bostic, scheduled later and the export-import price index for the month of September will provide detailed direction in the debt market.

The yield on the benchmark 10-year Treasuries jumped 3-1/2 basis points to 3.167 percent, the super-long 30-year bond yields also surged nearly 3-1/2 basis points to 3.338 percent and the yield on the short-term 2-year traded 3 basis points higher at 2.869 percent by 10:30GMT.

In the US, this afternoon will bring the preliminary reading of the University of Michigan’s consumer sentiment survey for October. The headline index will doubtless remain historically high – the elevated level in September was only slightly below the high for the current expansion of 101.4 reached in March. Import price figures for September are also due, Daiwa Capital Markets reported.

Meanwhile, the S&P 500 Futures traded 0.90 percent higher at 2,770.00 by 10:355GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -50.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex