Treasuries Close Slightly Higher After Slew Of Economic Data

(RTTNews) - Treasuries moved modestly higher over the course of the trading session on Wednesday on the heels of the release of a slew of U.S. economic data.

Bond prices saw some early volatility but managed to remain positive in afternoon trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.1 basis points to 2.232 percent.

The modest strength among treasuries came following the release of several key U.S. economic reports, including a Labor Department report showing that initial jobless claims fell by more than expected in the week ended November 21st.

The Labor Department said jobless claims fell to 260,000, a decrease of 12,000 from the previous week's revised level of 272,000. Economists had expected jobless claims to edge down to 270,000.

A separate report from the Commerce Department showed that new orders for manufactured durable goods increased by much more than expected in the month of October.

Durable goods orders surged up by 3.0 percent in October after falling by a revised 0.8 percent in September. Economists had expected orders to increase by 1.5 percent.

Excluding a jump in orders for transportation equipment, durable goods orders rose by just 0.5 percent in October compared to the 0.1 percent dip seen in September.

The Commerce Department also released a report showing that new home sales rebounded strongly in October after pulling back sharply in the previous month.

The report said new home sales jumped 10.7 percent to an annual rate of 495,000 in October after slumping 12.9 percent to a revised 447,000 in September.

While a third report from the Commerce Department showed that personal income rose in line with estimates in the month of October, personal spending increased less than expected.

The University of Michigan also released a report showing that consumer sentiment in November improved by less than previously estimated.

Treasuries saw continued strength following the release of the results of the Treasury Department's auction of $29 billion worth of seven-year notes.

The seven-year note auction drew a high yield of 2.013 percent and a bid-to-cover ratio of 2.51, while the ten previous seven-year note auctions had an average bid-to-cover ratio of 2.46.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Following the Thanksgiving Day holiday on Thursday, trading activity is likely to be relatively subdued on Friday amid a lack of major U.S. economic data.