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Treasuries Extend Recent Move To The Upside

Treasuries moved notably higher over the course of the trading day on Thursday, extending the upward move seen over the two previous sessions.

Bond prices saw initial strength and climbed more firmly into positive territory as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.5 basis points to 1.815 percent.

With the continued decrease, the ten-year yield has slumped by 11.8 basis points since ending last Friday's trading at its highest closing level in over three months.

Treasuries benefited from their appeal as a safe haven amid disappointing economic data from overseas as well as concerns U.S.-China talks could drag on despite previous indications the signing of a phase trade deal was imminent.

Chinese officials have suggested rolling back tariffs would need to be part of a phase one deal, but President Donald Trump has seemed reluctant to lift the tariffs and give up leverage in the ongoing negotiations.

In U.S. economic news, the Labor Department released a report this morning showing U.S. producer prices rebounded by slightly more than anticipated in the month of October.

The report said the producer price index for final demand climbed by 0.4 percent in October after falling by 0.3 percent in September. Economists had expected producer prices to rise by 0.3 percent.

Excluding food and energy prices, core producer prices rose by 0.3 percent in October following a 0.3 percent drop in September. Core prices had been expected to edge up by 0.2 percent.

Meanwhile, a separate Labor Department report showed first-time claims for U.S. unemployment benefits increased by much more than expected in the week ended November 9th.

The report said initial jobless claims climbed to 225,000, an increase of 14,000 from the previous week's unrevised level of 211,000. Economists had expected jobless claims to inch up to 215,000.

Economic news may move back into the spotlight on Friday, with traders likely to keep an eye on reports on retail sales and industrial production.

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