U.S. Treasuries surge ahead of April retail sales, couple of FOMC members’ speeches

The U.S. Treasury yields slumped during Wednesday’s afternoon session, ahead of the country’s retail sales for the month of April, scheduled to be released today by 12:30GMT, besides, a host of speeches by Federal Open Market Committee (FOMC) members – Quarles, and Barkin, shall add further direction to the debt market.

The yield on the benchmark 10-year Treasury yield plunged 4-1/2 basis points to 2.375 percent, the super-long 30-year bond yields slumped 3-1/2 basis points to 2.818 percent and the yield on the short-term 2-year also traded 3-1/2 basis points lower at 2.168 percent by 11:25GMT.

Today will bring the most notable economic data of the week in the shape of industrial production and retail sales figures for April. Following a slight drop in March, IP likely struggled to gain traction at the start of Q2 with a modest increase in manufacturing, subdued activity in mining, and a drop in utilities likely, Daiwa Capital Markets reported.

And after a surprisingly strong end to the first quarter, underlying retail sales growth is expected to be softer last month although the headline rate will likely be inflated by higher prices of gasoline. The Empire manufacturing and NAHB housing indices, both for May, and business inventory data for March, are also due, the report added.

Meanwhile, the S&P 500 Futures traded tad 0.20 percent lower at 2,833.88 by 11:30GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 120.41 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex