U.S. Treasuries tad lower ahead of 5-year auction, Q2 GDP

The U.S. Treasuries remained tad lower Tuesday ahead of the country’s 5-year auction, scheduled to be held today by 17:00GMT. Also, the second-quarter gross domestic product (GDP), due to be released on August 29 by 12:30GMT will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries rose nearly 1/2 basis point to 2.85 percent, the super-long 30-year bond yields gained close to 1 basis point to 3.004 percent and the yield on the short-term 2-year traded flat at 2.653 percent by 11:10GMT.

In the US most attention today will be on the Conference Board’s consumer survey for August and the advance goods trade and inventory reports for July. On Wednesday, the second release of GDP statistics for Q2 seems likely to reveal only modest revisions to the preliminary estimate of 4.1 percent q/q ann. growth.

Pending home sales data for July are also released that day. On Thursday, most attention will be focused on the personal income and spending report for July, which should reveal a reasonable lift in consumer spending and perhaps a nudge higher of the core PCE deflator from the 1.9 percent y/y pace recorded in June.

On Friday, the week concludes with the Chicago PMI for August and the final results of the University of Michigan consumer survey for August. In the bond market, the US Treasury will auction 5-year notes today, and both 2-year FRNs and 7-year notes tomorrow.

Meanwhile, the S&P 500 Futures traded 0.11 percent higher at 2,901.50 by 11:15GMT, and at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -44.66 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex