WASHINGTON (dpa-AFX) - After moving modestly higher over the past several sessions, treasuries showed a more substantial move to the upside during trading on Thursday.
Bond prices rallied early in the session and remained firmly positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 13.3 basis points to 3.976 percent.
With the steep drop on the day, the ten-year yield closed below 4.0 percent level for the first time since January.
The rally by treasuries came as some disappointing data has led to concerns about the outlook for the U.S. economy.
The Institute for Supply Management released a report showing U.S. manufacturing activity unexpectedly contracted at an accelerated rate in the month of July.
The ISM said its manufacturing PMI fell to 46.8 in July from 48.5 in June, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 48.8 percent.
With the bigger than expected decrease, the manufacturing PMI dropped to its lowest level since hitting 46.6 in November 2023.
The Labor Department also released a report showing first-time claims for U.S. unemployment benefits rose to their highest level in almost a year in the week ended July 27th.
The report said initial jobless claims climbed to 249,000, an increase of 14,000 from the previous week's unrevised level of 235,000. Economists had expected jobless claims to inch up to 236,000.
With the bigger than expected increase, jobless claims reached their highest level since hitting 258,000 in the week ended August 5, 2023.
Trading on Friday is likely to be driven by reaction to the Labor Department's closely watched report on employment in the month of July.
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