Mild Comeback For Treasuries Amid Claims Data

Treasury prices were already slightly higher in overnight trading before the BLS released its Jobless Claims data, and haven’t changed much since. For the week ending February 27th, the BLS reported that 745k new applicants filed Initial Claims. That was slightly higher than the prior week’s slightly revised 736k, but less than the 750k that analysts expected. Continuing Claims for the week ending February 20th fell to 4.3M from 4.42M and that was about what was expected. Earlier in the day, Challenger, Gray, and Christmas reported that year-over-year, Job Cuts fell 39.1% in a significant departure from January’s 17.4% twelve-month-rate rise.

Also from the BLS, Q4 Unit Labor Costs rose 6%; slightly less than the forecast of 6.6%, while Q4 Nonfarm Productivity fell 4.2% and that was less than the expected plunge of 4.7%. Later today, the Census Bureau will issue final, January reports for Durable Goods Orders, Factory Orders, and Capital Goods Orders. Investors will also be waiting to hear what Fed Chairman Jerome Powell will say while he participates in a virtual, economic panel discussion hosted by the Wall Street Journal.

In the meantime, Treasury prices are slightly higher in the long end, but yields haven’t moved much. The Long Bond is resting around 2.25% with the Ten-Year’s yield around 1.47%. The Two-Year is unchanged at 14 basis points. Crude oil is steady at around $61.58 while gold is trying to rally a little bit to $1,717. DJIA futures are mildly green.