U.S Treasury Trades Flat Ahead of Yellen's Speech
The U.S. sovereign bonds were flat on Tuesday as investors awaited a speech by Federal Reserve’s Chair Janet Yellen which could give further indications for next interest rate hike, despite weak economic data on Monday.
Meanwhile, the benchmark 10-year Treasury notes were flat at 1.8 pct, while the yield on the 30-year Treasury bond was lower at 2.6412 pct at 11:00 AM GMT
The Fed Governor Yellen is set to deliver a speech on the "Economic Outlook and Monetary Policy" at the Economic Club of New York starting at 12:20pm E.T., which will be followed by a question-and-answer session. Investors will be combing through the Fed chair's comments for any details that could shed light on the timing of the Fed's next interest rate hike.
In addition, personal income and spending for February decelerated as compared to previous month reading. Individually, personal spending rose tad +0.1% m/m, revised +0.1% m/m reading seen in January (previous was +0.5% m/m). On the other hand, personal income rose +0.2% m/m in February, as compared to +0.5% m/m reading that occurred in January.
Besides non-farm payrolls on Friday, markets now await S&P/Case-Shiller home prices and Conference Board consumer confidence data on Tuesday, followed later by a 5Yr Note auction.
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