Treasuries Finish Volatile Session Modestly Lower

(RTTNews) - Treasuries saw considerable volatility over the course of the trading session on Thursday before ending the day modestly lower.

After spending the day bouncing back and forth across the unchanged line, bond prices moved to the downside going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.1 basis points to 1.488 percent.

The modestly lower close by treasuries came amid another rally on Wall Street, as stocks continued to recover from the sell-off seen following Britain's vote to leave the European Union.

Stocks moved sharply higher for the third consecutive session, largely offsetting the steep losses posted on Friday and Monday.

Bond traders were also responding to a speech by Bank of England Governor Mark Carney hinting at providing further stimulus.

In remarks to business leaders, Carney said a material slowing in economic growth now looks likely to be the central forecast in reaction to the so-called Brexit.

Carney subsequently said the deteriorating economic outlook will likely require some monetary policy easing over the summer.

"The Committee will make an initial assessment on 14 July, and a full assessment complete with a new forecast will follow in the August Inflation Report," Carney said. "In August, we will also discuss further the range of instruments at our disposal."

Meanwhile, traders largely shrugged off a Labor Department report showing that initial jobless claims rose by slightly more than expected in the week ended June 25th.

The report said initial jobless claims rose to 268,000, an increase of 10,000 from the previous week's revised level of 258,000. Economists had expected jobless claims to edge up to 266,000.

A separate report from MNI Indicators showed a much stronger than expected rebound in Chicago-area business activity in the month of June.

Reports on manufacturing activity and construction spending may impact trading on Friday, although traders are likely to remain focused on any headlines regarding the Brexit.