U.S. Treasuries trade flat ahead of Fed Chair Powell’s speech, Q3 GDP data

The U.S. Treasuries traded flat during late afternoon session Wednesday amid a muted trading session that witnessed data of little economic significance. However, markets will keenly eye Fed Chair Jerome Powell’s speech to the Economic Club of New York.

Meanwhile, the data-flow brings a second reading on Q3 GDP growth (initial estimate 3.5 percent ann.), together with advance trade and inventory reports for October, new home sales figures for the same month, and the Richmond Fed’s manufacturing survey for November.

The yield on the benchmark 10-year Treasuries remained flat at 3.057 percent, the super-long 30-year bond yields slipped 1 basis point to 3.311 percent and the yield on the short-term 2-year hovered around 2.835 percent by 11:20GMT.

In terms of the trade report, exports could prove disappointing once again, weighed by softer growth in emerging markets and Europe as well as the stronger dollar. However, with imports having been exaggerated in September due to efforts to beat the impact of the imposition of Trump’s tariffs, the net effect is likely to be a narrowing in the monthly trade deficit. Meanwhile, in the bond market, the Treasury will sell 7-year Notes and 2-year FRNs.

Meanwhile, the S&P 500 Futures remained tad 0.22 percent higher at 2,689.75 by 11:30GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 72.06 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex