Treasuries Show Modest Pullback Following Yesterday's Rally

(RTTNews) - Following the strong upward move seen in the previous session, treasuries showed a modest move back to the downside during trading on Thursday.

Bond prices fluctuated over the course of the session before ending the day in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up 1.8 basis points to 4.440 percent.

The modest pullback by treasuries may have reflected profit taking after yesterday's rally drove the ten-year yield down to its lowest closing level in well over a month.

Selling pressure remained somewhat subdued, however, as traders seemed reluctant to make significant moves ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

The report, which is expected to show employment climbed by 170,000 jobs in January after jumping by 256,000 jobs in December, could impact the outlook for interest rates.

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report this morning showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended February 1st.

The report said initial jobless claims climbed to 219,000, an increase of 11,000 from the previous week's revised level of 208,000.

Economists had expected initial jobless claims to rise to 213,000 from the 207,000 originally reported for the previous week.

A separate report released by the Labor Department showed U.S. labor productivity and unit labor costs both increased by less than expected in the fourth quarter of 2024.

The monthly jobs report is likely to be in the spotlight on Friday, while a preliminary readings on consumer sentiment and inflation expectations in February may also attract attention.