Treasuries Close Roughly Flat Following Choppy Trading Day

(RTTNews) - Treasuries showed a lack of direction over the course of the trading session on Thursday before eventually ending the day roughly flat.

Bond prices rebounded from an early move to the downside but pulled back near the unchanged line as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 4.463 percent.

The choppy trading on the day came following the release of a batch of largely upbeat U.S. economic data, including a Commerce Department report showing retail sales rebounded by much more than expected in the month of June.

The report said retail sales climbed by 0.6 percent in June after slumping by 0.9 percent in May. Economists had expected retail sales to inch up by 0.1 percent.

Excluding a jump in sales by motor vehicle and parts dealers, retail sales still rose by 0.5 percent in June after edging down by 0.2 percent in May. Ex-auto sales were expected to rise by 0.3 percent.

"Delayed tariff price increases and steady income growth continue to fuel spending despite weak survey data indicating building concerns by households," said Nationwide Senior Economist Ben Ayers.

He added, "The strong June for retail sales should support a solid rebound for real GDP growth in the second quarter but weaker activity is still likely over the second half of the year as tariff uncertainty hangs over the outlook."

A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits unexpectedly dipped to a three-month low in the week ended July 12th.

The Labor Department said initial jobless claims fell to 221,000, a decrease of 7,000 from the previous week's revised level of 228,000.

Economists had expected jobless claims to rise to 235,000 from the 227,000 originally reported for the previous week.

The Labor Department also released another report showing import prices in the U.S. inched up by less than expected in the month of June.

Trading on Friday may be impacted by reaction to reports on new residential construction and consumer sentiment and inflation expectations.