TREASURIES-Prices weighed by supply worries in thin trade
* Pending debt auctions weigh on the bond market
* Durable goods, jobless claims data also bearish
* Senate approves raising the U.S. debt limit (Updates prices)
By Chris Reese
NEW YORK, Dec 24 (Reuters) - U.S. Treasuries eased on Thursday in very thin pre-holiday trade as investors fretted over the reception for next week's round of government debt auctions.
Bond prices were also undermined by data showing a dip in weekly jobless claims and a jump in the sales of long-lasting goods last month, both of which were seen as signs the economy is on the rebound, cutting demand for lower-risk assets.
The Treasury will auction $118 billion of two-year, five-year and seven-year notes next week, and some analysts are worried over the possibility of slim demand for the coupons in another holiday-shortened week.
"There are some lingering jitters about next week's auctions coming in a very quiet week," said William O'Donnell, head of U.S. Treasury strategy at RBS Securities in Stamford, Connecticut.
Benchmark 10-year Treasury notes US10YT=RR were trading 10/32 lower in price to yield 3.80 percent, up from 3.76 percent late on Wednesday. The notes were on track for the worst weekly performance in four weeks and the worst monthly performance since January, with speculation a nascent economic recovery is beginning to take hold.
The government on Thursday said the number of workers filing new applications for jobless benefits fell last week to the lowest level in more than 15 months. For details click on [ID:nN24182733].
The government also said new orders for long-lasting U.S. manufactured goods excluding transportation surged 2.0 percent in November, handily beating market expectations for a 1.0 percent rise.
"Treasuries have sold off slightly on the (data) release," said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.
Worries over pending debt supply are not likely to diminish any time soon. A measure cleared the U.S. Congress on Thursday to increase the U.S. debt limit by $290 billion, enough to keep financing the record deficit for another two months.
The Senate voted to raise the current $12.1 trillion limit and sent the bill to the White House for President Barack Obama to sign into law. The House of Representatives approved the increase on Dec. 16.
Two-year Treasury notes US2YT=RR were trading 2/32 lower in price to yield 0.97 percent, up from 0.93 percent late on Wednesday, while the 30-year bond US30YT=RR was 25/32 lower to yield 4.66 percent from 4.61 percent.
The Treasuries market will close early on Thursday, at 2 p.m. Eastern time (1900 GMT) ahead of Friday's Christmas Day holiday. (Editing by Leslie Adler)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints


Follow Reuters