U.S. Treasuries suffer ahead of initial jobless claims, 10-year TIPS auction

The U.S. Treasuries continued to be beaten Thursday as investors look forward to the country’s weekly initial jobless claims, scheduled to be released today by 13:30GMT, followed by the Philly Fed Manufacturing index, due by the same time. Also, the 10-year TIPS auction, to be held later today will add further direction in the debt market.

The yield on the benchmark 10-year Treasuries jumped nearly 3 basis points to 2.60 percent, the super-long 30-year bond yields also surged 3 basis points to 2.87 percent and the yield on the short-term 2-year traded 1 basis point higher at 2.05 percent by 11:35GMT.

In the US, as well as the latest weekly jobless claims numbers, today will bring the results of the Philadelphia Fed’s manufacturing survey for the current month as well as housing starts and building permits data for December. Investors’ attention will also remain on political efforts in Congress to pass a stop-gap public spending bill to avoid a government shutdown after Friday.

US Treasury yields were also higher across the curve with the 2-year yield hitting a fresh decade high close to 2.06 percent on the view that the Federal Reserve will continue to gradually tighten its monetary policy as the US economic expansions continue and the unemployment rate is expected to fall further this year.

Meanwhile, the S&P 500 Futures traded 0.05 percent higher at 2,805.25 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -116.01 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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