Treasuries Give Back Ground Following Upbeat Economic Data

(RTTNews) - After trending higher over the past few sessions, treasuries showed a notable move back to the downside during trading on Thursday.

Bond prices came under pressure after remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.0 basis points to 4.096 percent.

The pullback by treasuries came following the release of a batch of largely upbeat U.S. economic data, including a Commerce Department report showing retail sales increased by slightly more than expected in the month of September.

The Commerce Department said retail sales rose by 0.4 percent in September after edging up by 0.1 percent in August. Economists had expected retail sales to rise by 0.3 percent.

Excluding sales by motor vehicle and parts dealers, retail sales climbed by 0.5 percent in September after rising by 0.2 percent in August. Ex-auto sales were expected to inch up by 0.1 percent.

A separate report released by the Labor Department showed an unexpected pullback by first-time claims for U.S. unemployment benefits in the week ended October 12th.

The report said initial jobless claims fell to 241,000, a decrease of 19,000 from the previous week's revised level of 260,000.

Economists had expected jobless claims to inch up to 260,000 from the 258,000 originally reported for the previous week.

With the unexpected pullback, jobless claims gave back ground after reaching their highest level since hitting 261,000 in the week ended June 17, 2023.

Meanwhile, the Federal Reserve released a report showing industrial production in the U.S. fell by slightly more than expected in the month of September.

The Fed said industrial production decreased by 0.3 percent in September after rising by a downwardly revised 0.3 percent in August.

Economists had expected industrial production to dip by 0.2 percent compared to the 0.8 percent increase originally reported for the previous month.

The slightly bigger than expected decline by industrial production partly reflected a strike at Boeing (BA) and the effects of Hurricanes Helene and Milton.

Looking ahead, the Commerce Department is scheduled to release a repot on new residential construction in the month of September on Friday.