U.S. Treasuries trade lower amid global political turmoil, muted trade

The U.S. Treasuries traded lower Friday in the midst of a political turmoil in the global economy, following the UK snap election that resulted in a hung Parliament amid the absence of any economically influential data.

The yield on the benchmark 10-year Treasury, rose 1 basis point to 2.20 percent, the super-long 30-year bond yields hovered around 2.86 percent and the yield on short-term 2-year note traded 1 basis point higher at 1.33 percent by 11:20GMT.

Today’s UK snap elections yielded a hung Parliament with the Conservative Party coming first but short of a majority. In a knee-jerk reaction to the UK election outcome, the GBP weakened across the board, UK gilts gained some ground while the FTSE100 index was higher in early trade on Friday.

Ex-FBI director’s testimony to US Congress could trigger extra doubts about the Trump administration’s transparency. This source of uncertainty is added to the market’s dovish tone on the Fed’s pace of tightening after the release of some weaker-than-expected economic indicators during the last few weeks (it dragged down UST yields and the USD as the odds of two extra hikes in Fed Funds this year are below 50 percent).

Meanwhile, the S&P 500 Futures traded 0.08 percent higher at 2,434.75 by 11:20GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 16.72 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex