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Treasuries Extend Upward Move Ahead Of Jobs Report

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Extending the rebound seen over the past few sessions, treasuries showed another move to the upside during trading on Thursday.

Bond prices fluctuated after an early advance but managed to remain in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 2.327 percent.

The ten-year yield moved lower for the fourth straight day, continuing to give back ground after reaching its highest closing level since May 2019 last Friday.

The continued rebound by treasuries came after a reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth accelerated to 5.4 percent in February from 5.2 percent in January.

While the annual rate of growth reached its highest level since April 1983, the jump was slightly smaller than the 5.5 percent expected by economists.

Traders may also have looked to the safe haven of bonds ahead of the release of the Labor Department’s closely watched monthly employment report on Friday.

Economists currently expect the report to show employment jumped by 490,000 jobs in March after surging by 678,000 jobs in February. The unemployment rate is expected to edge down to 3.7 percent from 3.8 percent.

The jobs data could impact expectations regarding how quickly the Federal Reserve plans to raise interest rates in the months ahead.

A day ahead of the release of the closely watched monthly jobs report, the Labor Department released a report on Thursday showing a modest increase in first-time claims for U.S. unemployment benefits in the week ended March 26th.

The report showed initial jobless claims edged up to 202,000, an increase of 14,000 from the previous week’s revised level of 188,000.

Economists had expected jobless claims to inch up to 197,000 from the 187,000 originally reported for the previous week.

The monthly jobs report is likely to be in the spotlight on Friday, overshadowing reports on manufacturing activity and construction spending.

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