Treasuries Close Slightly Lower Following Lackluster Session

(RTTNews) - Treasuries moved to the upside over the course of the two previous sessions but turned in a lackluster performance during trading on Thursday.

Bond prices bounced back and forth across the unchanged line before ending the day slightly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1 basis point to 4.206 percent.

The choppy trading on the day came as traders seemed reluctant to make significant moves ahead of the release of a Commerce Department report on personal income and spending on Friday that includes readings on inflation said to be preferred by the Federal Reserve.

While the inflation data could impact the outlook for interest rates, traders will have to wait until next Monday to react to the report due to the markets being closed for Good Friday.

Economists expect the annual rate of consumer price growth to inch up to 2.5 percent in February from 2.4 percent in January, while the annual rate of core consumer price growth is expected to come in unchanged at 2.8 percent.

The holiday will also see Fed Chair Jerome Powell participate in a moderated discussion before the Federal Reserve Bank of San Francisco Macroeconomics and Monetary Policy Conference.

With the focus on tomorrow's inflation data, traders largely shrugged off a slew of U.S. economic data released this morning.

The Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended March 23rd.

The report said initial jobless claims dipped to 210,000, a decrease of 2,000 from the previous week's revised level of 212,000.

Economists had expected jobless claims to rise to 215,000 from the 210,000 originally reported for the previous week.

A separate report released by the Commerce Department showed the U.S. economy unexpectedly grew by more than previously estimated in the fourth quarter of 2023.

Revised data showed real gross domestic product surged by 3.4 percent in the fourth quarter compared to the previously reported 3.2 percent jump. Economists had expected the pace of GDP growth to be unrevised.

The National Association of Realtors also released a report showing a notable rebound by pending home sales in the month of February.

NAR said its pending home sales index shot up by 1.6 percent to 75.6 in February after plunging by 4.7 percent to a revised reading of 74.4 in January.

Economists had expected pending home sales to jump by 1.5 percent compared to the 4.9 percent nosedive originally reported for the previous month.

Separately, the University of Michigan released revised data showing an unexpected improvement in U.S. consumer sentiment in the month of March.

The report said the consumer sentiment index for March was upwardly revised to 79.4 from the preliminary reading of 76.5. Economists had expected the reading to be unrevised.

With the unexpected upward revision, the consumer sentiment index for March is now above the final February reading of 76.9.

Following the long weekend, reaction to the inflation data may impact trading next Monday, while the monthly jobs report is likely to be in focus later in the week.