Treasuries Move Back To The Downside Amid Gains On Wall Street

(RTTNews) - Following the rebound seen in the previous session, treasuries moved back to the downside during trading on Thursday.

Bond prices came under pressure early in the trading day and remained stuck in the red throughout the session. As a result, the yield on the benchmark ten-year note, which moves of its price, climbed 6.8 basis points to 1.531 percent.

The pullback by treasuries came as stocks on Wall Street extended a recent upward trend, lifting the Dow and the S&P 500 to new record highs.

Traders have been moving money into riskier assets like stocks amid optimism about additional monetary stimulus from central banks.

Speculation regarding new rounds of both fiscal and monetary stimulus in Japan has led to a notable decline in the value of the Japanese yen.

The U.S. dollar is trading at 105.47 yen compared to the 104.49 yen it fetched at the close of New York trading on Wednesday.

Earlier in the day, the Bank of England unexpectedly refrained from cutting interest rates but signaled more action next month after policymakers get more assessments on economic growth.

Economists had widely expected the BoE to cut rates by 25 basis points due to uncertainty arising from Britain's vote to leave the European Union.

On the U.S. economic front, the Labor Department released a report this morning showing that initial jobless claims unexpectedly came in flat in the week ended July 9th.

The report said initial jobless claims came in at 254,000, unchanged from the previous week's unrevised level. Economists had expected jobless claims to climb to 265,000.

A separate Labor Department report showed that producer prices rose by more than expected in the month of June, with energy prices showing another substantial increase.

The Labor Department said its producer price index for final demand climbed by 0.5 percent in June after rising by 0.4 percent in May. The index had been expected to increase by 0.3 percent.

Excluding food and energy prices, core producer prices rose by 0.4 percent in June following a 0.3 percent increase in May. Economists had expected core prices to edge up by 0.2 percent.

Trading on Friday may be impacted by reaction to a slew of U.S. economic data, including reports on retail sales, industrial production, and consumer prices.