U.S. Treasuries trade modestly weak on expectations of lower unemployment rate in February

The U.S. Treasuries traded modestly weak Friday as investors cashed in profits amid expectations of a lower rate of unemployment during the month of February.

The yield on the benchmark 10-year Treasury rose nearly 1/2 basis point to 2.60 percent, the super-long 30-year bond yield rose 1/2 basis point to 3.15 percent and the yield on short-term 2-year note traded 1 basis point higher at 1.38 percent by 11:40GMT.

The country’s unemployment rate is expected to fall to have fallen to 4.7 percent during the month of February, from 4.8 percent in January, while non-farm payrolls likely fell to 200K, from 227K during the same period.

Lastly, the U.S. and China are likely to clash on how to deal with North Korea. The acceleration of deploying THAAD in South Korea is angering China.  The North Korea issue is becoming more pressing as the regime progresses on developing an ICBM that could reach the US. A military confrontation would lead to a risk-off move in markets.

Meanwhile, the S&P 500 Futures rose 0.38 percent or 9.00 points to 2,375.25 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 83.43 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex