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Bond Report: Treasury yields look past stock-market surge ahead of U.S. data

Bond Report

U.S. Treasury yields were on hold on early Thursday’s trade ahead of a raft of economic data that will shed light on the employment landscape and health of service industries.

What are Treasurys doing?

The 10-year Treasury note yield

was marginally higher by 0.2 basis point to 0.653%. The 30-year bond yield

rose 0.8 basis point to 1.383%, while the 2-year note rate

was steady at 0.137%.

What’s driving Treasurys?

Bond yields have stayed well within their trading range, shrugging off the record-breaking rise in stocks this week. The S&P 500 index

and Dow

are seen opening lower after a record breaking rally this week.

The U.S. Labor Department reports weekly jobless claims at 8.30 a.m. ET with a fall to 940,000 in the latest weekly period ending in Aug 29, from a previous 1.1 million.

The Bureau of Labor Statistics said last week it will change its method for adjusting initial jobless claims to account for seasonal swings in employment. That could lead to a sharp decline in new claims this week, but does not necessarily mean fewer Americans are losing their jobs.

Investors will also weigh U.S. trade deficit numbers for July, revised productivity data for the second-quarter, and the IHS Markit and Institute for Supply Management’s purchasing managers surveys for the service sector for August.

What did market participants’ say?

“The ongoing firm bid in safe havens did not come at the expense of risky assets. Indeed, weak data and diminishing expectations in terms of reflation is manna from heaven for risk,” said analysts at Rabobank.

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