WASHINGTON (dpa-AFX) - Following the pullback seen in the previous session, treasuries showed a lack of direction throughout the trading day on Thursday.
Bond prices spent the day bouncing back and forth across the unchanged line before eventually closing slightly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 4.672 percent.
The choppy trading on the day came as traders seemed reluctant to make significant moves ahead of Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole economic symposium on Friday.
Warsh has been reluctant to provide forward guidance for monetary policy, but traders are still likely to pay close attention to his remarks for clues about the outlook for interest rates.
The new Fed Chief's remarks come on the heels of Wednesday's Commerce Department showing consumer prices in the U.S. increased by slightly more than expected in the month of July.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after edging down by 0.1 percent in June. Economists had expected prices to inch up by 0.1 percent.
The report also said the annual rate of growth by the PCE price index came in at 3.7 percent in July, unchanged from in June. The annual rate of growth was expected to dip to 3.6 percent.
Excluding food and energy prices, the core PCE price index still rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase matched economist estimates.
The annual rate of growth by the core PCE price index was 3.3 percent in July, unchanged from June and in line with expectations.
'Inflation remains too high for policymakers to become comfortable, leaving markets waiting for Kevin Warsh's first Jackson Hole speech tomorrow for clues on how he intends to navigate the tension between softer growth and persistent price pressures,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
Following yesterday's report indicating inflation remains sticky, CME Group's FedWatch Tool is currently indicating a 66.1 percent chance the Fed will leave rates unchanged next month and a 33.9 percent chance of a quarter point rate hike.
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