By Ben Eisen, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices retreated Thursday
after a slew of global economic data, paring a rise for much of
July that had pushed benchmark yields close to their lowest level
in 13 months.
The 10-year note (10_YEAR) yield, which rises as prices fall,
was up 4 basis points on the day at 2.505%. The yield closed at
2.464% in the previous session, near its lowest closing level in 13
months, 2.438%, which it reached at the end of May.
Some positive economic data helped bolster confidence in the
economy, reducing demand for high-quality assets like U.S.
Treasurys, which investors tend to buy when the growth outlook is
weak:
* Jobless claims dropped to the lowest level in over eight
years. The number of people applying for unemployment benefits last
week fell by 19,000 to 284,000, beating Wall Street expectations of
a 310,000 reading.
* The HSBC purchasing managers' index for Chinarose to an
18-month high in July, while PMI data showed the euro zone was
regaining momentum, led by Germany.
Treasurys cut some losses after weaker economic numbers:
* Sales of U.S. single-family homes fell in June to their lowest
level in three months. The seasonally adjusted annual rate of
406,000 was lower than economist expectations of a 475,000.
* The Markit flash purchasing managers' index for the U.S.
slipped in July. The reading came in at 56.34, versus 57.3 in
June.
U.S. government debt prices were also weighed down by a
forthcoming auction:
* Sale of $15 billion in 10-year Treasury inflation-protected
securities at 1 p.m. Strategists at Nomura Securities say: "10-year
TIPS still look attractive relative to 5-year and 30-year and
should attract foreign interest given the yield pick-up versus
overseas linkers."
The 30-year Treasury bond (30_YEAR) yield rose 4 basis points on
the day to 3.296% while the 5-year note (5_YEAR) yield rose 4 basis
points to 1.690%.
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