TREASURIES-Bond prices slip on jobless claims drop

Thu Jan 24, 2013 3:00pm EST

Related Topics

* U.S. jobless claims unexpectedly fall to 5-year low
    * Strong bids at $15 bln 10-year TIPS auction


    By Richard Leong
    NEW YORK, Jan 24 (Reuters) - U.S. Treasury debt prices
slipped on Thursday after data showed first-time filings for
weekly jobless benefits fell to a five-year low, raising hopes
of an improving U.S. labor market and paring safe-haven bets on
government debt.
    Initial strength in U.S. blue-chip stocks, together with a
temporary extension of the federal debt ceiling, also undermined
Treasuries prices, as the benchmark S&P 500 index briefly
climbed above 1,500 for the first time since late 2007.
    The unexpected drop in jobless claims "caught some people by
surprise and exposed some longs," said Tom Roth, executive
director of U.S. government bond trading at Mitsubishi UFJ
Securities USA Inc in New York.
     
    Benchmark 10 year Treasury notes were 5/32 lower
in price to yield 1.845 percent, up 1.7 basis points from late
on Wednesday.
    Bond prices bounced back from their session lows after
strong demand at a $15 billion auction of a new 10-year Treasury
Inflation Protected Security issue.
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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