Treasury Prices Fall After Wednesday's Rally

Investors took in jobless claims news and awaited speeches from Federal Reserve officials

MARKETSCOPE : Treasury bond prices are losing ground on Thursday after their recent rally.

The benchmark 10 year notes fell to 99-18/32 for yield of 4.561%, compared to 99-22/32 for yield of 4.537% hours earlier Thursday. The 30-year bonds slipped to 99-31/32 for yield of 4.507% from an earlier 100-08/32 for yield of 4.485%.

News hit that Initial Jobless Claims fell 20,000 to 278,000 in the week ended Feb. 18, from 298,000 the week before which was revised from 297,000.

"The low level of jobless claims in January was believed to be partly due to unseasonably warm weather that would have resulted in fewer than normal seasonal layoffs," says John Ryding, an analyst at Bear Stearns. "However, despite a return to more seasonally typical weather in February, unemployment claims have remained low." He thinks this suggests that job creation has remained solid into February.

Investors were also expecting to hear speeches by outgoing Federeal Reserve Vice President Ferguson, Philadelphia President Santomero, and Dallas Fed President Fisher. January 31 minutes released Tuesday showed that the board worried about high energy prices potential impact on inflation. Still, policy makers didn't see signs of that becoming a serious problem yet.

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