Treasuries Move To The Upside In Light Holiday Trading

(RTTNews) - After ending the previous session roughly flat, treasuries moved to the upside during the trading day on Wednesday.

Bond prices moved modestly higher in early trading and climbed more firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.2 basis points to 4.137 percent.

The strength among treasuries may have reflected ongoing optimism about the outlook for interest rates despite the recent release of some upbeat economic data.

The Labor Department released a report this morning showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended December 20th.

The report said initial jobless claims dipped to 214,000, a decrease of 10,000 from the previous week's unrevised level of 224,000. Economists had expected jobless claims to edge down to 223,000.

"Despite ongoing seasonal volatility, initial jobless claims remain in a range consistent with relatively steady labor market conditions and don't change out outlook for the labor market or Fed policy," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

Treasuries may also have benefitted from their appeal as a safe haven amid concerns about escalating tensions between the U.S. and Venezuela.