Bonds ease on offsetting reports

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Bonds ease on offsetting reports


Jump in jobless claims counters NY manufacturing survey; dollar mixed vs. euro and yen.
April 15, 2004: 9:39 AM EDT

NEW YORK (CNN/Money) - U.S. Treasury prices fell slightly Thursday after strong figures from a regional manufacturing survey offset a jump in initial jobless claims.

The benchmark 10-year note fell 3/32 to 96-31/32 to yield 4.36 percent, up from 4.34 percent late Wednesday, and the 30-year bond shed 1/8 of a point with a yield of 5.15 percent, up from 5.14 percent Wednesday.

The two-year note held at 98-28/32 to yield 2.06 percent and the five-year note fell 1/16 of a point to 98-19/32.

The Empire State Manufacturing survey's April reading increased to 36.05 from 25.3 in March. Analysts surveyed by Briefing.com were only looking for an increase to 29.0.



The New York survey countered a report from the Labor Department that showed 360,000 Americans issued first-time claims for unemployment insurance, up 30,000 from the previous week and 25,000 above economists' estimates.

"The strong U.S. economic data, which is the momentum driving the market higher, is still in place. The second factor has been the move in interest rate markets," Mitul Kotecha, head of global foreign exchange research at Credit Agricole told Reuters.

A recent slew of positive economic reports, including strong gains in consumer prices, retail sales and corporate payrolls, has led market watchers to anticipate an interest rate hike by the Federal Reserve in the not too distant future.

In the currency market, the dollar was mixed against the euro and the yen. The euro bought $1.1929, down from $1.1967 late Wednesday, and the dollar bought ¥108.35, down from ¥108.75 late in the previous session.