|
Home
NEW YORK (Reuters) - U.S. Treasury prices fell on
Thursday after a surprising decline in the number of Americans applying
for first-time jobless benefits dealt another blow to an already battered
market.
In fresh evidence of a recovering labor market, first-time jobless claims
fell to 328,000 in the week ended April 3 from 342,000 in the prior
week. Economists had forecasts a much smaller dip to 340,000.
"The lower-than-expected number of new jobless claims shows that
the labor market is continuing to improve," said Gary Thayer, chief
economist at A.G. Edwards and Sons. "It suggests that the economy
is strong and that companies are feeling more comfortable about hanging
on to workers."
The signs of job strength made traders increasingly worried that the
Federal Reserve (news - web sites) might begin hiking interest rates
sooner than previously thought.
The Fed has made it clear that it would like to see several months of
solid job gains before it begins to tighten monetary policy. Some think
the recent strides in employment could be the foundation for such a
move.
The benchmark 10-year note 6/32 lower for a yield of 4.19 percent from
4.16 percent late Wednesday. Just before a large increase in March payrolls
was reported last Friday, yields were as low as 3.87 percent.
In early trading, two-year yields had risen to 1.89 percent from 1.84
percent, while yields on five-year notes climbed to 3.24 percent from
3.19 percent. The 30-year bond was off 17/32 to yield 5.04 percent from
5.01 percent.
The market's losses were curbed in part by worries that the long holiday
weekend could bring surprises on the security front. Escalating violence
in Iraq (news - web sites) and repeated warnings of possible attacks
from al Qaeda are at the top of investors' list of concerns.
The U.S.-led occupation of Iraq had been less prominent on the market
radar in recent months, but the deaths of 35 American and allied soldiers
and at least 200 Iraqis over the last three days has brought the conflict
back to center stage.
More News:
4-08-04
Jobless Claims Plunge Last Week
4-08-04
April 15 Is Not the End of Tax Concerns
4-08-04
Beware of shady credit-fix schemes
4-08-04
Investors' concern shifts to Iraq war
4-08-04
L.A. couple sues IRS to win tax deduction
4-08-04
Last-Minute Tax Returns - Get That Shoebox Ready
4-08-04
Manufacturer tax cut snagged on partisan debate
4-08-04
Paying Taxes By Credit Card Off To A Slow Start
4-08-04
Solid Sales Lift U.S. Retailers in March
4-08-04
US manufacturing outlook rises to record high
4-08-04
U.S. mortgage rates unchanged on Thursday
Financial
News
|
