U.S. Treasuries trade lower on caution ahead of initial jobless claims, 10-year TIPS auction

The U.S. Treasuries traded lower during late afternoon session Wednesday ahead of the initial jobless claims, scheduled to be released today by 13:30GMT. Also, the 10-year TIPS auction, due today by 18:00GMT will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries jumped 3-1/2 basis points to 2.872 percent, the super-long 30-year bond yields also surged 3-1/2 basis points to 3.329 percent and the yield on the short-term 2-year too remained nearly 3-1/2 basis points higher at 2.829 percent by 10:30GMT.

Today in the US brings further data from the housing market – which is showing signs of a loss of momentum across a range of indicators, as perhaps might have been expected following steady increases in mortgage rates – with October’s existing home sales figures due, Daiwa Capital Markets reported.

Durable goods orders for the same month are also scheduled for release – with the headline figure expected to report a notable decline on the back of soft order flows for commercial jets and bookings for defence aircraft – alongside the Conference Board’s Leading index and the final reading of the University of Michigan’s consumer sentiment survey for November.

In addition, the weekly jobless claims figures have been brought forward to today ahead of the Thanksgiving Holiday. And, against the backdrop of the recent marked drop in oil prices, the Baker rig count has similarly been brought forward today for release along with the usual EIA oil data. Supply-wise, the US Treasury will sell 10-year TIPS, the report added.

Meanwhile, the S&P 500 Futures remained tad 0.52 percent higher at 2,652.25 by 10:40GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 116.07 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex