U.S. Treasuries tad higher in muted trading; investors eye 10-year auction

The U.S. Treasuries traded tad higher in a muted trading session that awaits data of little economic significance and ahead of the 10-year auction, scheduled to be held by later this week.

The yield on the benchmark 10-year Treasury, fell 1 basis point to 2.31 percent, the super-long 30-year bond yields also slipped 1 basis point to 2.89 percent and the yield on short-term 2-year note traded nearly flat at 1.35 percent by 11:50GMT.

Following further disappointing inflation and retail sales figures last week and ahead of the Fed’s next monetary policy announcement on 26 July, this week brings largely second-tier economic data. July business surveys include the Empire manufacturing (today) and Philly Fed indices (Thursday).

Housing market data include the July NAHB indices (tomorrow) and June housing starts and building permits figures (Thursday). And June import prices, May TIC capital flows (both Tuesday) and the June Conference Board leading indicators and usual weekly claim figures (both Thursday) are among other releases. In the bond markets, the Treasury will sell 10Y TIPS.

Meanwhile, the S&P 500 Futures traded 0.09 percent higher at 2,458.25 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -108.51 (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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