Treasuries Move To The Upside Following Jobless Claims Data

(RTTNews) - Following the lackluster performance seen in the previous session, treasuries moved to the upside during trading on Thursday.

Bond prices moved higher early in the day and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.5 basis points to 4.50 percent.

The strength among treasuries came after the Labor Department released a report showing first-time claims for U.S. unemployment benefits climbed by a little more than expected in the week ended February 15th.

The Labor Department said initial jobless claims rose to 219,000, an increase of 5,000 from the previous week's revised level of 214,000.

Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.

The Federal Reserve Bank of Philadelphia also released a report showing Philadelphia-area manufacturing activity continued to expand in the month of February, although the index of activity in the sector pulled back sharply.

The Philly Fed said its diffusion index for current general activity plunged to 18.1 in February after skyrocketing to 44.3 in January, but a positive reading still indicates growth. Economists had expected the index to slump to 20.0.

Looking ahead, trading on Friday may be impacted by reaction to the latest U.S. economic data, including a report on existing home sales and a revised reading on consumer sentiment.