U.S. Treasuries trade lower on expectations of drop in initial jobless claims

The U.S. Treasuries traded lower Wednesday, following expectations of a drop in the country’s initial jobless claims, scheduled to be released on June 8.

The yield on the benchmark 10-year Treasury slumped nearly 3 basis points to 2.15 percent, the super-long 30-year bond yields also plunged close to 3 basis points to 2.81 percent and the yield on short-term 2-year note traded 1-1/2 basis points lower at 1.29 percent by 10:50GMT.

Risk-off sentiment pushed government bond prices up and falling US bond yields weighed further on the US dollar, already pressured by intensified political uncertainty. Against this background, the USD fell to a 1-1/2 month low of 109.13 against the safe-haven JPY in European trade.

Former FBI Director James Comey is scheduled to testify before a Senate Committee on Thursday about an investigation into former National Security Advisor, the ECB Governing Council convenes on the same day and the UK holds snap general elections.

Meanwhile, the S&P 500 Futures traded flat at 2,431.25 by 11:10GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 33.22 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex