U.S. Treasuries slump on support from Trump’s positive China trade deal comments

The U.S. Treasuries slumped during Friday’s afternoon session, following a little support from comments from President Donald Trump that a trade deal with China is still a “good possibility” and that Huawei might be addressed in any new agreement.

Investors shall be keeping a close eye on the country’s preliminary estimate of durable goods orders figures for April, due to be released today at 12:30GMT, for further light on the debt market.

The yield on the benchmark 10-year Treasury yield jumped nearly 3-1/2 basis points to 2.329 percent, the super-long 30-year bond yields surged nearly 3 basis points to 2.760 percent and the yield on the short-term 2-year traded 3-1/2 basis points higher at 2.164 percent by 13:40GMT.

Recent soft data from the manufacturing sector point to the likelihood of a subdued reading for core orders, while Boeing’s troubles will result in a sharp decline in the volatile aircraft category, Daiwa Capital Markets reported.

The Bloomberg consensus is for a drop of 2.0 percent m/m in total durable goods orders and a decline of 0.3 percent m/m in non-defence orders ex-aircraft and parts, the report added.

Meanwhile, the S&P 500 Futures traded nearly 1 percent lower at 2,858.25 by 13:45GMT, while at 13:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -5.20 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex