U.S. Treasuries snap gains ahead of FOMC Chair Powell’s speech

The U.S. Treasuries snapped gains during Tuesday’s afternoon session, ahead of the Federal Open Market Committee (FOMC) Chair Jerome Powell’s speech, scheduled to be held today by 13:45GMT, besides a host of additional speeches by members Williams and Brainard, due at 12:30GMT and 19:45GMT respectively.

The yield on the benchmark 10-year Treasury yield jumped 2 basis points to 2.102 percent, the super-long 30-year bond yields also surged nearly 2 basis points to 2.566 percent and the yield on the short-term 2-year gained 4 basis points to 1.881 percent by 11:40GMT.

In the US, today will bring the release of April’s factory orders data. Despite an anticipated increase in orders for non-durable goods, the sharp contraction reported in the advance durable orders will likely see total orders fall back in April after a strong rise at the end of the first quarter, Daiwa Capital Markets reported.

But given the recent sharp adjustment in global financial markets and a marked rise in expectations for Fed easing this year, most attention will likely be on the Fed’s two-day conference discussing the central bank’s policy framework, with Fed Chair Powell giving opening remarks at 13.55GMT, the report added.

Meanwhile, the S&P 500 Futures traded tad 0.22 percent lower at 2,746.38 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -127.41 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex