Treasuries Move Back To The Upside After Yesterday's Downturn

(RTTNews) - Following the downturn seen over the course of the previous session, treasuries moved back to the upside during trading on Thursday.

Bond prices fluctuated early in the session before climbing more firmly into positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.3 basis points to 4.418 percent.

The dip on the day came after the ten-year yield ended Wednesday's trading at its highest closing level in over four months.

Treasuries regained ground after the Labor Department released a report showing producer prices in the U.S. increased in line with economist estimates in the month of October.

The Labor Department said its producer price index for final demand rose by 0.2 percent in October following a revised 0.1 percent uptick in September.

Economists had expected producer prices to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.

Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.4 percent in October from an upwardly revised 1.9 percent in September.

The annual rate of producer price growth was expected to accelerate to 2.3 percent from the 1.8 percent originally reported for the previous month.

Meanwhile, bond traders largely shrugged of a separate Labor Department report showing first-time claims for U.S. unemployment benefits unexpectedly dipped to a nearly six-month low last week.

Trading on Friday is likely to be driven by reaction to remarks by Federal Reserve Chair Jerome Powell that took place shortly after the bond markets closed.

Powell argued the Fed does not "need to be in a hurry to lower rates" due to the strength of the economy, which gives the central bank the ability to approach its decisions carefully.

Reports on retail sales, industrial production and import and export prices may also impact bond market trading on Friday.