Treasuries Regain Ground Following Recent Sell-Off

(RTTNews) - Following the sell-off seen over the past few sessions, treasuries regained some ground over the course of the trading day on Thursday.

After seeing early strength, bond prices pulled back in late morning trading before moving back to the upside in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5.9 basis points to 2.307 percent.

With the drop on the day, the ten-year yield pulled back off the nearly seven-month closing high set in the previous session.

The rebound by treasuries was partly due to bargain hunting following the steep drop seen the first three days of the week.

Treasuries may also have benefited from renewed concerns about Greece after yesterday's highly anticipated meeting between Greek and European officials once again ended in a stalemate.

The International Monetary Fund announced this afternoon that the Greek government will bundle the four debt payments due to the lender in June into a single payment due at the end of the month.

Separately, the IMF released a statement following its latest consultation on the U.S. economy urging the Federal Reserve to delay raising interest rates until the first half of next year.

The IMF's call for delaying the first rate hike came as the lender lowered its forecast for U.S. economic growth this year to 2.5 percent from 3.1 percent.

Looking ahead, the Labor Department's monthly jobs report is likely to move into the spotlight on Friday, with the data potentially having a significant impact on the outlook for rates.

The report is expected to show an increase of about 220,000 jobs in May, while the unemployment rate is expected to hold at 5.4 percent.