(Corrects quote in 4th paragraph to make it "consensus" instead
* Fed to buy $2.25 bln-$2.75 bln in notes maturing between
2021 and 2024
* Jobless claims, PMI and CPI data optimistic, but expected
* Disappointing PMI data from Europe and China raises
trading volume overnight
By Marina Lopes
NEW YORK, Feb 20 U.S. Treasuries prices were
little changed on Thursday as mostly positive economic data met
expectations and barely affected prices.
The data showed that fewer Americans filed for unemployment
last week, consumer prices inched higher in January and
manufacturing activity accelerated at its fastest pace in nearly
Factory activity in the mid-Atlantic region unexpectedly
contracted, data released by the Philadelphia Federal Reserve
Bank showed, with new orders plunging far below estimates.
The contraction, however, did not significantly
"The fact that we are not seeing a great deal of price
action as a result of the morning release of economic data is
largely a function of the fact that they were a consensus"
result, said Ian Lyngen, an interest rate strategist at CRT
"Given the relatively uneventful data, it was priced in and
that is why the market's response has been fairly muted," Lyngen
Benchmark 10-year note yields reached session highs of 2.75
following the manufacturing data.
The 10-year notes were unchanged in price to
yield 2.73 percent. Thirty-year bonds gained 6/32 in
price to yield 3.70 percent, down from 3.71 percent.
"There has not been a great deal of dramatic events from
either the Fed or the data itself. We are trading off of what is
going on in emerging markets and domestic equities. The residual
of these issues are flowing through to the Treasury markets,"
Overnight, disappointing PMI data from Europe and China
pushed up trading volumes to 150 percent of average, analysts
The Fed will buy between $2.25 billion and $2.75 billion in
notes maturing between 2021 and 2024 as a part of its continuing
bond buying program on Thursday.
Investors will monitor existing home sales data, set to be
released on Friday, but they said they expect consumer
confidence figures, due on Tuesday, to have a more significant
impact on the market.
(Reporting By Marina Lopes)