Treasuries Pull Back Further Off Highs On Upbeat Data From Overseas

(RTTNews) - Extending the downward trend seen over the past several sessions, treasuries moved notably lower during trading on Thursday.

Bond prices moved steadily lower for much of the session but regained some ground going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, advanced by 4.6 basis points to 2.275 percent.

With the increase on the day, the ten-year yield closed higher for the fifth time in six sessions, climbing further off last Wednesday's one-year closing low.

The continued pullback by treasuries was partly due to easing concerns about the global economy following the release of upbeat readings on manufacturing activity in both China and Europe.

The results of a survey by Markit Economics and HSBC showed that Chinese manufacturing activity grew at a faster rate in October, with the manufacturing index edging up 0.2 points to 50.4.

Separately, Markit said its manufacturing index for the eurozone rose 0.4 points to 50.7 in October, suggesting an unexpected expansion.

On the U.S. economic front, the Labor Department released a report showing that initial jobless claims rebounded in the week ended October 18th after hitting a fourteen-year low in the previous week.

The report said initial jobless claims climbed to 283,000, an increase of 17,000 from the previous week's revised level of 266,000. Economists had expected jobless claims to rise to 285,000.

Meanwhile, the Conference Board released a separate report showing that its index of leading U.S. economic indicators rose by more than economists had anticipated in the month of September.

The report said the leading economic index climbed by 0.8 percent in September, while revised data showed that the index was unchanged in August. The index had been expected to rise by 0.6 percent.

Economic data is likely to continue to attract attention on Friday, with traders likely to keep an eye on a report on new home sales.