TREASURIES-U.S. Treasuries prices slip after ECB cuts rate
By Ellen Freilich
NEW YORK May 2 (Reuters) - U.S. Treasuries prices slipped on Thursday after the European Central Bank cut its main interest rate.
The benchmark 10-year Treasury note slipped 3/32, allowing its yield to edge up to 1.646 percent from 1.633 percent late on Wednesday.
The European Central Bank cut its main interest rate by 25 basis points to a record low of 0.50 percent on Thursday, after inflation fell well below the ECB's target and increasingly weak economic surveys increased doubts about a recovery.
"The ECB basically did what was expected, but nothing more," said John Canavan, fixed income analyst at Stone & McCarthy Research Associates. "As a result, Treasuries have run into a little 'buy the rumor, sell the fact' profit-taking as players wait for the follow-up press conference."
ECB President Mario Draghi is set to explain the ECB decision at a news conference due to begin at 8:30 EDT (1230 GMT).
The ECB rate cut came as euro zone inflation fell to 1.2 percent in April, clearly undershooting the ECB's target of below but close to 2 percent.
The Treasuries market is also waiting for the U.S. Labor Department's weekly report on new jobless claims, due at 8:30 a.m. EDT (1230 GMT). New claims are estimated to have totaled 345,000 in the week ended Saturday, according to economists polled by Reuters.
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