WASHINGTON (dpa-AFX) - After moving to the downside early in the session, treasuries regained ground over the course of the trading day on Thursday.
Bond prices climbed well off their early lows and firmly into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.4 basis points to 4.274 percent after reaching a high of 4.353 percent.
Treasuries initial moved to the downside following the release of the Labor Department's report on producer price inflation.
The report said producer prices were unexpectedly unchanged in February, while annual rate of producer price growth slowed more than expected to 3.2 percent.
As with yesterday's consumer-price inflation data, the report eased concerns about stagflation, reducing the safe-haven appeal of bonds.
Safe-haven buying emerged as the day progressed, however, with treasuries benefiting from a sell-off on Wall Street amid President Donald Trump's ongoing tariff threats.
After indicating he would respond to the European Union's countermeasures with even more tariffs, Trump also threatened to impose a 200 percent tariff on all wines, champagnes and alcoholic products coming out of the EU.
The latest developments on the tariff front are likely to be in focus on Friday, while traders are also likely to keep an eye on the University of Michigan's preliminary report on consumer sentiment and inflation expectations in March.
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