2021.12.0219:39:00UTC+00Treasuries Show Modest Move To The Downside

After showing a lack of direction early in the session, treasuries moved modestly lower over the course of the trading day on Thursday.

Bond prices climbed off their worst levels going into the close but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.4 basis points to 1.448 percent.

The modest weakness among treasuries came as a rally on Wall Street reduced the appeal of safe havens like bonds.

Stocks showed a strong move to the upside after pulling back sharply over the course of the previous session, with the Dow bouncing off a nearly two-month closing low.

The rebound extends the rollercoaster ride stocks have been on since news of the detection of omicron variant of the coronavirus.

In U.S. economic news, the Labor Department released a report showing a modest rebound by initial jobless claims in the week ended November 27th.

The report said initial jobless claims rose to 222,000, an increase of 28,000 from the previous week's revised level of 194,000.

Economists had expected jobless claims to climb to 240,000 from the 199,000 originally reported for the previous week.

The modest increase came after jobless claims tumbled to their lowest level since 1969 in the previous week, although the drop was partly attributed to the later timing of Thanksgiving this year throwing off the seasonal adjustment.

Looking ahead, the Labor Department's closely watched monthly jobs report is likely to be in the spotlight on Friday, overshadowing separate reports on service sector activity and factory orders.

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