Treasurys Post Modest Losses

An unexpectedly strong Chicago PMI report weighed on the market Thursday

Treasuries fell modestly Thursday on back of an unexpectedly strong May Chicago PMI reading that overshadowed a downward revision to Q1 GDP.

The 10-year note fell 07/32 in price to 97-30/32 for a yield of 4.89%. The 30-year bond fell 06/32 to 95-31/32 for a yield of 5.01%.

The 10-year Treasury yield tested technical resistance at 4.90% and pulled back. If resistance here holds, the yield would be at a natural place to turn back down in the near future after surging since mid-May.

Near-term Treasury market direction could depend on the May labor report Friday morning, which is expected to show nonfarm payroll job growth of 140,000.

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