WASHINGTON (dpa-AFX) - Treasuries moved sharply lower during trading Thursday, giving back ground after moving higher over the two previous sessions.
Bond prices showed a significant move to the downside in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 9.8 basis points to 4.373 percent.
The steep drop by treasuries came as news of trade deal between the U.S. and the U.K. reduced safe haven appeal of bonds.
President Donald Trump unveiled the framework of the trade agreement with the U.K. but noted the final details of the deal are still 'being written up.'
Trump claimed the deal includes billions of dollars of increased market access for American exports, especially in agriculture, and will see the U.K. reduce or eliminate numerous non-tariff barriers.
Even with the deal, the 10 percent tariff Trump imposed on most countries in early April will remain in place for imports from the U.K.
Treasuries saw continued weakness in afternoon trading after the Treasury Department revealed this month's auction of $25 billion worth of thirty-year bonds attracted below average demand.
The thirty-year bond auction drew a high yield of 4.819 percent and a bid-to-cover ratio of 2.31, while the ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.42.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits saw a modest decline in the week ended May 3rd.
The Labor Department also released a separate report showing a pullback by U.S. labor productivity in the first quarter of 2025 along with a sharp increase by unit labor costs.
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