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U.S. Treasuries trade mixed ahead of medium-term 5-year auction, FOMC member Bostic’s speech

The U.S. Treasuries traded mixed Tuesday ahead of the medium-term 5-year auction, due today at 17:00GMT and FOMC member Bostic is due to deliver a keynote speech at 15:00GMT for further direction in the debt market.

The yield on the benchmark 10-year Treasuries rose 1 basis point to 2.85 percent, the super-long 30-year bond yields jumped nearly 2 basis points to 3.08 percent while the yield on the short-term 2-year traded 1 basis point lower at 2.30 percent by 11:40GMT.

Later in the US, the Conference Board consumer survey for March and S&P/CoreLogic home price report for January are due. Most notably, strong job growth could lead to a slight increase in consumer confidence from the cyclical high reached in February. Stock market volatility and trade-war talk pose downside risks, although the survey will probably not contain many responses submitted after those concerns became most acute last week.

A final reading on Q4 GDP (currently estimated at 2.7 percent q/q annualized) will also be released that day, together with pending home sales data for February. On Thursday, the personal income and spending report for February will be the focus. Spending is likely to be up modestly at best given the soft retail sales report released earlier this month, Daiwa Capital Markets reported.

However, most interest will centre on the core PCE deflator for February, with the consensus expectation of a softer monthly increase of 0.2 percent m/m down from 0.3 percent m/m in January. That, however, would nudge the annual rate up 0.1ppt to 1.6 percent y/y, the highest in ten months. The Chicago PMI and final University of Michigan consumer survey results for March will also be released before investors head away for the Easter break.

Meanwhile, the S&P 500 Futures rose 0.53 percent to 2,673.50 by 11:55GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 12.89 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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