Treasuries Close Modestly Higher But Well Off Best Levels

(RTTNews) - After moving notably higher in early trading on Thursday, treasuries gave back some ground but managed to end the day in positive territory.

Bond prices moved roughly sideways going into the close, hovering modestly above the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.6 basis points to 2.335 percent.

The initial strength among treasuries was partly due to renewed concerns about the outlook for the global economy following the release of disappointing Chinese manufacturing data.

The results of a preliminary survey by HSBC and Markit Economics showed that Chinese manufacturing activity stagnated in November.

The manufacturing purchasing managers index fell 0.4 points to 50, while economists expected a reading of 50.2 for the month.

A separate report from Markit showed that European manufacturing activity grew at a slower rate in the month of November.

However, treasuries pulled back well off their early highs following the release of some upbeat U.S. economic data.

The National Association of Realtors released a report showing an unexpected increase in existing home sales in the month of October.

NAR said existing home sales climbed 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October from an upwardly revised 5.18 million in September. Economists had expected existing home sales to edge down to 5.15 million.

Additionally, the Philadelphia Federal Reserve said its regional manufacturing index jumped to its highest level in over twenty years in November.

Following today's slew of data, the economic calendar is relatively quiet on Friday, potentially leading to light trading activity.