U.S. Treasury yields plunge in muted trading day ahead of 7-year auction, Q1 GDP data

The U.S. Treasury yields plunged during Tuesday’s afternoon session, after returning from a long weekend, following yesterday’s Memorial Day holiday amid an otherwise muted trading session that is scheduled to witness data of little economic significance.

However, this week’s 7-year note auction and the Q1 gross domestic product (GDP) data, besides, a host of other releases, will be closely eyed for detailed direction in the debt market.

The yield on the benchmark 10-year Treasury yield plunged 4-1/2 basis points to 2.285 percent, the super-long 30-year bond yields slumped 4 basis points to 2.716 percent and the yield on the short-term 2-year traded nearly 3-1/2 basis points lower at 2.143 percent by 11:30GMT.

In the US, the housing market will be the main focus today with the FHFA and S&P Corelogic house price indices for March due for release. The Conference Board’s latest consumer confidence survey for May is also due today – while the labour market should continue to boost household confidence, the weaker equity market that month might well have weighed on consumers’ expectations, Daiwa Capital Markets reported.

So, the headline index is likely to have moved broadly sideways this month, close to the top of the range for 2019, but broadly in line with the average of last year, the report added.

Meanwhile, the S&P 500 Futures traded 0.22 percent lower at 2,825.62 by 11:35GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -40.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex