2017.08.1715:15:00UTC+00Treasuries Close Higher After Recovering From Early Weakness

After an early move to the downside, treasuries turned higher over the course of the trading session on Thursday.

Bond prices ended the session near their best levels of the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.7 basis points to 2.199 percent.

The higher close by treasuries came as stocks on Wall Street fell sharply amid concerns about political turmoil in Washington, D.C.

The backlash to President Donald Trump's response to last weekend's violent events in Charlottesville, Virginia, has led to worries about the president's pro-business agenda.

On the U.S. economic front, the Labor Department released a report showing a bigger than expected drop in initial jobless claims in the week ended August 12th.

The report said initial jobless claims dropped to 232,000, a decrease of 12,000 from the previous week's unrevised level of 244,000. Economists had expected jobless claims to edge down to 240,000.

A separate report from the Philadelphia Federal Reserve showed a modest slowdown in the pace of growth in regional manufacturing activity in the month of August.

The Philly Fed Index edged down to 18.9 in August from 19.5 in July, although a positive reading still indicates growth in regional manufacturing activity. The index has been expected to dip to 18.5.

Meanwhile, the Federal Reserve released a report showing industrial production rose by slightly less than expected in the month of July.

The report said industrial production edged up by 0.2 percent in July after climbing by 0.4 percent in June. Economists had expected production to rise by 0.3 percent.

Trading on Friday may be impacted by reaction to the University of Michigan's preliminary report on consumer sentiment in the month of August. The consumer sentiment index is expected to inch up to 94.0 in August from 93.4 in July.