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TREASURIES-U.S. Treasuries flat ahead of 30-year bond auction
May 8, 2014 / 2:15 PM / in 3 years

TREASURIES-U.S. Treasuries flat ahead of 30-year bond auction

* Prices little changed

* Jobless data causes no ripples

* 30-year auction finishes $69 bln of new bond sales

By Michael Connor

NEW YORK, May 8 (Reuters) - U.S. Treasuries shrugged off data showing an easing in America’s weekly jobless claims on Thursday, leaving prices little changed as traders awaited an auction of new 30-year government bonds that could steer investment flows in coming days.

“No one’s willing to make a commitment ahead of the auction,” said Lou Brien, market strategist at FTN Financial in Chicago.

Traders were also closely watching congressional testimony on Thursday by Federal Reserve Chair Janet Yellen, who on Wednesday reaffirmed her dovish policymaking stance in another congressional appearance.

Ten-year Treasury notes yielded 2.6107 percent in New York trading, up from Wednesday’s closing 2.593 percent.

Yields on U.S. 30-year bonds, which on Friday touched their weakest level since June 19 at 3.34 percent, were at 3.311 percent after a price increase of 7/32.

Other Treasury maturities were unchanged or slightly up in price.

Early in the New York trading day, the government reported that the number of Americans filing fresh unemployment claims had declined 26,000 to 319,000.

The data for the week through April 26 broke a three-week string of increases and was below forecasts.

Overall, the report suggested improvements in America’s labor markets of a type that would usually weigh on bond prices. But Yellen on Wednesday told legislators that monetary policy would likely remain accommodative for an extended time.

Later Thursday, at 1 p.m. EDT (1330 GMT), Treasury Department officials will announce the results of the auction of $16 billion of 30-year bonds, the last leg of $69 billion of sales of new debt this week.

“It will be well bid,” Brien said. “There has been solid demand for Treasuries for years.” (Reporting By Michael Connor in New York)

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