U.S. Treasuries suffer ahead of December CPI, FOMC member Williams’ speech

The U.S. Treasuries suffered during Monday’s afternoon session ahead of the country’s consumer price inflation (CPI) for the month of December, scheduled to be released today by 13:30GMT and FOMC member Williams’ speech, also due today by 14:00GMT.

The yield on the benchmark 10-year Treasury yield surged nearly 2 basis points to 1.844 percent, the super-long 30-year bond yield jumped 2 basis points to 2.305 percent and the yield on the short-term 2-year gained 1 basis point to 1.582 percent by 11:55GMT.

In the US, while much focus will be on the signing of the first phase of the US-China trade deal on Wednesday, this week will bring several top-tier economic releases too, kicking off tomorrow with December CPI figures expected to show increases of 0.2 percent in both the headline and core measures, Daiwa Capital Markets reported.

As such, the annual headline rate is forecast to have shifted slightly higher at the end of last year, by 0.3ppt to 2.3 percent, on the back of energy price movements. Core inflation, however, is expected to move sideways at 2.3 percent y/y. The following day will bring retail sales figures for December, expected to post a pickup following subdued sales in November, the report added.

But Friday’s IP report for the same month seems likely to disappoint, with manufacturing output forecast to have moved broadly sideways following a jump in November. That day will also bring the University of Michigan’s flash consumer sentiment survey for January, Daiwa further noted in the report.

Other releases due include the NFIB business optimism survey (tomorrow), Empire manufacturing survey (Wednesday), Philly Fed business survey (Thursday) and various housing market indicators., Daiwa Capital Markets reported.

Meanwhile, the S&P 500 Futures remained tad 0.24 percent higher at 3,272.62 by 12:00GMT.