US Treasuries finished lower on Thursday, slipping on a recipe of stronger economic data and upcoming supply blended with thin, preholiday trade. Bond trading waned as trading desks exited for a long holiday weekend. The bond market closed early at 2 pm EST and will be closed on Friday for Christmas.
A drop in initial jobless claims and a separate decline in continuing claims offered evidence the labour market was on the mend. Some economists think US payrolls may have even added jobs in December. "We project a 25,000 increase in December payrolls to be released on January 8, 2010," said Ward McCarthy, chief fixed-income financial economist at Jefferies & Co New York.
Meanwhile, the underlying details of the government's report on November durable goods orders "pointed to solid demand from households and businesses," said Joseph LaVorgna, chief US economist at Deutsche Bank Securities in New York. The stronger data, viewed as evidence the economy is doing better, damped demand for safe-haven government securities. Benchmark 10-year Treasury notes were down 12/32 in price in late trade Thursday, their yields rising to 3.81 percent from 3.76 percent late Wednesday and up sharply from 3.54 percent at the close last Friday.
Two-year Treasury notes were trading 2/32 lower in price to yield 0.97 percent, up from 0.93 percent late Wednesday and 0.80 last Friday. The 30-year bond was down a point, its yield rising to 4.68 percent from 4.61 percent on Wednesday and 4.46 percent last Friday.
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