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Treasuries Extend Pullback Amid Rally On Wall Street

Following the pullback seen in the previous session, treasuries saw some further downside during trading on Thursday.

Bond prices came under pressure early in the session and remained stuck in negative territory throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.9 basis points to 2.241 percent.

With the increase on the day, the ten-year yield climbed further off the five-month closing low that it set on Tuesday.

The continued weakness among treasuries came as stocks moved notably higher amid a positive reaction to the latest corporate news.

The Dow bounced well off the two-month closing low set on Wednesday, with American Express (AXP) leading the blue chip index higher after reporting better than expected first quarter results.

In economic news, the Labor Department released a report showing a slightly bigger than expected increase in initial jobless claims in the week ended April 15th.

The report said initial jobless claims climbed to 244,000, an increase of 10,000 from the previous week's unrevised level of 234,000. Economists had expected jobless claims to rise to 242,000.

A separate report from the Philadelphia Federal Reserve showed a notable slowdown in the pace of growth in regional manufacturing activity in the month of April.

The Philly Fed said its index for current manufacturing activity in the region fell to 22.0 in April from 32.8 in March, although a positive reading indicates continued growth. Economists had expected the index to drop to 25.5.

Meanwhile, the Conference Board released a report showing a bigger than expected increase by its index of leading economic indicators in the month of March.

The Conference Board said its leading economic index rose by 0.4 percent in March after climbing by a revised 0.5 percent in February. Economists had expected the index to edge up by 0.2 percent.

In other bond-related news, the Treasury Department announced the details of next week's long-term securities auctions.

The Treasury said it plans to auction $26 billion worth of two-year notes next Tuesday, $34 billion worth of five-year notes next Wednesday and $28 billion worth of seven-year notes next Thursday.

On Friday, the National Association of Realtors is scheduled to release its report on existing home sales in the month of March. Existing home sales are expected to climb to an annual rate of 5.60 million.

by RTTNews Staff Writer

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