U.S. Treasury yields revive strength ahead of FOMC speeches, host of 2-tier economic data

The U.S. Treasury yields revived strength during Tuesday’s afternoon session, ahead of a host of speeches by members of the Federal Open Market Committee (FOMC) scheduled for later in the day – members George and Daly will deliver their speeches at 16:45GMT and 22:00GMT respectively.

Besides, today’s NFIB small business optimism indices for April and import and export price indices for the same month might add some spice to the debt market.

The yield on the benchmark 10-year Treasury yield rose 1-1/2 basis points to 2.419 percent, the super-long 30-year bond yields edged nearly 2 basis points higher to 2.856 percent and the yield on the short-term 2-year traded nearly 1 basis point higher at 2.201 percent by 11:30GMT.

Risk off mode prevailed in early trade on Tuesday on the back of intensified US-China trade concerns. In response to the US administration’s decision last week to raise tariffs on USD200 billion worth of imports from China to 25 percent from 10 percent, China’s Ministry of Finance announced on Monday that USD60 billion US goods will be subject to increased tariffs of 5 percent, 10 percent and 25 percent effective on June 1, Eurobank Economic Analysis & Financial Markets Research reported.

On its part, retaliating against China’s increased duties, the US Trade Representative’s office said that it plans to hold a public hearing next month on the possibility of imposing duties of up to 25 percent on a further USD300 billion worth of imports from China, the report added.

Meanwhile, the S&P 500 Futures traded 0.77 percent higher at 2,828.38 by 11:35GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -26.49 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex