Treasuries Close Little Changed Following Lackluster Session
After moving sharply higher in the previous session, treasuries showed a lack of direction during the trading day on Thursday.
Bond prices spent the day bouncing back and forth across the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 0.776 percent.
The choppy trading in the bond market came as traders kept an eye on the latest news regarding the presidential election.
With projected wins in Michigan and Wisconsin, Democratic nominee Joe Biden currently sits at 253 electoral college votes, just shy of the 270 needed to win the White House.
Votes continue to be counted in a number of key states, including Arizona, Nevada, Pennsylvania and Georgia.
While Biden currently seems poised to unseat President Donald Trump, Democrats are not expected to take control of the Senate.
In U.S. economic news, the Labor Department released a report showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended October 31st.
The report said initial jobless claims edged down to 751,000, a decrease of 7,000 from the previous week’s revised level of 758,000.
Economists had expected jobless claims to drop to 732,000 from the 758,000 originally reported for the previous week.
On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of October.
Employment is expected to increase by about 600,000 jobs in October after climbing by 661,000 jobs in September. The unemployment rate is expected to edge down to 7.7 percent from 7.9 percent.
Meanwhile, the members of the Federal Reserve announced that they decided to keep the target range for the federal funds rate at 0 to 1/4 percent, as widely expected.
The accompanying statement said the Fed expects rates to remain unchanged until labor market conditions have reached levels consistent with the central bank’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.
The Fed also said it plans to increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions.
Trading on Friday may continue to be impacted by reaction to the latest election results along with the monthly jobs report.
The material has been provided by InstaForex Company – www.instaforex.com