2017.12.1415:20:00UTC+00Treasuries Close Roughly Flat After Recovering From Early Weakness

After moving to the downside in morning trading, treasuries rebounded over the course of the trading session on Thursday before closing roughly flat.

Bond prices climbed well off their lows of the session to finish the day slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its prices, edged down by less than a basis point to 2.346 percent.

The recovery by treasuries came amid an uncertainty about the outlook for the Republican tax reform plan after Senator Marco Rubio, R-Fla., indicated his opposition to the legislation currently being negotiated.

Rubio wants an expansion of the proposed child tax credit, while Senator Bob Corker, R-Tenn., voted against the original Senate bill due to concerns about the cost of the plan.

Republicans can only afford to lose two votes in the Senate and still pass the bill with a tie-breaking vote by Vice President Mike Pence.

The initial weakness among treasuries came following the release of a batch of upbeat economic data, including a report from the Commerce Department showing a bigger than expected increase in retail sales in the month of November.

The report said retail sales climbed by 0.8 percent in November after rising by an upwardly revised 0.5 percent in October.

Economists had expected retail sales to increase by 0.3 percent compared to the 0.2 percent uptick originally reported for the previous month.

Excluding a modest decrease in sales by motor vehicle and parts dealers, retail sales surged up by 1.0 percent in November after climbing by 0.4 percent in October.

A separate report released by the Labor Department showed an unexpected decrease in initial jobless claims in the week ended December 9th.

The report said initial jobless claims dropped to 225,000, a decrease of 11,000 from the previous week's unrevised level of 236,000. Economists had expected jobless claims to inch up to 239,000.

Another report released by the Labor Department showed import prices increased in line with economist estimates in the month of November, while export prices rose by much more than anticipated.

The Labor Department said its import price index climbed by 0.7 percent in November after inching up by 0.1 percent in October.

Export prices rose by 0.5 percent in November after ticking up by 0.1 percent in the previous month. Economists had expected export prices to edge up by 0.2 percent.

Meanwhile, the Commerce Department released a report showing a modest decrease in business inventories in the month of October.

The Commerce Department said business inventories edged down by 0.1 percent in October after showing no change in September. The slight drop in inventories matched economist estimates.

Trading on Friday may be impacted by reaction to reports on New York manufacturing activity and industrial production.