Treasuries Move To The Downside On Upbeat Jobs Data

(RTTNews) - Treasuries moved to the downside during trading on Thursday, pulling back further off the highs set earlier this week.

Bond prices came under pressure in early trading and remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.9 basis points to 2.737 percent.

The weakness among treasuries came following the release of a report from the Labor Department showing that initial jobless claims fell by more than expected in the week ended March 1st.

The report said initial jobless claims dropped to 323,000, a decrease of 26,000 from the previous week's revised figure of 349,000. Economists had expected jobless claims to dip to 338,000.

With the bigger than expected decrease, jobless claims fell to their lowest level since hitting 305,000 in the last week of November.

The data represents an upbeat sign for the labor market ahead of tomorrow's closely watched monthly jobs report.

Economists expect the report to show that employment increased by about 150,000 jobs in February following the addition of 113,000 jobs in January. The unemployment rate is expected to remain unchanged at 6.6 percent.

While the jobs report is likely to drive trading on Friday, the reaction may be somewhat subdued due to the likely impact of the severe winter weather.

The employment numbers are still likely to overshadow a separate report from the Commerce Department on the U.S. trade balance in the month of January.