Treasuries Pare Gains as U.S. Jobless Claims Lower Than Forecast
Treasuries pared gains, lifting the 10-year note yield up from almost the lowest ever, as a government report showed U.S. initial jobless claims were lower than forecast, damping concern the labor market is faltering.
Treasuries rose earlier along with the bonds of other highly rated nations amid concern central banks need to take more action to sustain faltering global growth, spurring demand for the safest assets. Thirty-year bond yields rose from almost a record low before the government sells $13 billion of the securities today.
The 10-year Treasury yield fell two basis points, or 0.02 percentage point, to 1.50 percent at 8:32 a.m. in New York, according to Bloomberg Bond Trader prices. The yield dropped to a record 1.4387 percent on June 1.
Applications for jobless benefits decreased by 26,000 in the week ended July 7 to 350,000, the fewest since March 2008, Labor Department figures showed today. Economists forecast 372,000 claims, according to the median estimate in a Bloomberg News survey. Last week’s distortion is likely to unwind slowly over coming weeks, a Labor Department spokesman said as the data was released to the press.
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