WASHINGTON (dpa-AFX) - After coming under pressure over the course of the previous session, treasuries showed a strong move to back the upside during trading on Thursday.
Bond prices advanced early in the session and continued to turn in a strong performance throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.4 basis points to 4.093 percent.
The ten-year yield largely offset the 6.8 basis point jump seen on Wednesday, when it reached its highest closing level in a month.
The rebound by treasuries came as new privately-released data led to renewed concerns about the strength of the labor market.
Amid another relatively quiet day on the U.S. economic front due to the ongoing government shutdown, global outplacement firm Challenger, Gray & Christmas released a report showing a sharp increase in layoff announcements in the month of October.
Challenger, Gray & Christmas said U.S.-based employers announced 153,074 job cuts in October, up 183 percent from the 54,064 job cuts announced in September and up 175 percent from the 55,597 cuts announced in the same month a year ago.
'Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,' said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
He added, 'Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.'
Challenger, Gray & Christmas said employers have announced 1,099,500 job cuts through the first ten months of the year, marking the highest level of year-to-date job cuts since 2020.
Treasuries may also have benefited from the appeal as a safe haven, as selling pressure re-emerged on Wall Street following yesterday's rebound.
Concerns about an artificial intelligence bubble and the possibility of a near-term correction have recently weighed on investors' minds.
A preliminary reading on U.S. consumer sentiment in November may attract attention on Friday, as the government shutdown delays the release of the Labor Department's closely watched monthly jobs report.
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