Following the sharp setback seen in the course of the previous two sessions, government bonds regained some ground during Thursday’s trading.
Bond prices fell from their highest levels in the afternoon trading, but still closed in the positive territory. As a result, benchmark 10-year bond yields fell 1.5 basis points to 1.265%, contrary to price.
The Treasury rebound followed the release of mixed economy data, including a report from the Ministry of Labor showing an unexpected increase in first unemployment claims during the week ending July 17.
The Ministry of Labor said the first unemployment claims rose by 51,000 from last week’s revised level of 368,000 to 419,000.
A surprised economist at the rebound who expected unemployed claims to drop from 360,000 initially reported last week to 350,000.
Meanwhile, another report from the National Association of Real Estate Agents shows a rebound in June after existing home sales declined for the fourth straight month.
According to the NAR, after a 1.2% drop to a revision rate of 5.78 million in May, existing home sales surged 1.4% in June to an annual rate of 5.86 million.
Economists expected existing home sales to grow 1.7% from the previously reported 5.8 million last month to a percentage of 5.9 million.
With monthly increases, existing home sales rebounded after dropping to their lowest levels in May’s 11 months.
The Treasury has also released details of this month’s auction of notes for 2, 5, and 7 years.
The Treasury has announced plans to sell $ 60 billion worth of 2-year bonds, $ 61 billion worth of 5-year bonds and $ 62 billion worth of 7-year bonds.
The results of the 2-year bond auction will be announced next Monday, the results of the 5-year bond auction will be announced next Tuesday, and the results of the 7-year bond auction will be announced next Thursday.
Friday’s economic calendar is relatively quiet after some major US economic data was released this morning.
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Government bonds regain ground following recent withdrawals
Source link Government bonds regain ground following recent withdrawals