U.S. Treasuries surge ahead of FOMC Chair Powell’s speech, September PPI

The U.S. Treasuries surged during Tuesday’s afternoon session ahead of a speech by Federal Open Market Committee (FOMC) Chair Jerome Powell, scheduled to be delivered at 17:50GMT, besides, a speech from another member, Neel Kashkari, also due later today.

In addition, the country’s producer price index (PPI) for the month of September, due for release lately today, will be of further importance to the debt markets.

The yield on the benchmark 10-year Treasury yield slumped nearly 3 basis points to 1.526 percent, the super-long 30-year bond yield suffered nearly 2-1/2 basis points to 2.021 percent and the yield on the short-term 2-year plunged 3 basis points to 1.431 percent by 12:10GMT.

In the US, ahead of Thursday’s CPI release, today will bring PPI figures for September, which are expected to show that core producer prices remained little changed last month, Daiwa Capital Markets reported.

Today will also see the release of the NFIB small business optimism survey for September, which is expected to fall back towards the bottom of the recent range, the report added.

Lastly, Fed Chair Powell will give a speech at the annual conference of the National Association of Business Economists, while FOMC voting member Evans is due to speak in Chicago. In the markets, the Treasury will sell 3-year notes, Daiwa further noted in the report.

Meanwhile, the S&P 500 Futures suffered -0.62 percent to trade at 2,919.62 by 12:15GMT.