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Treasurys hold steady
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March 2, 2000: 3:22 p.m. ET
Investors sidelined ahead of key jobs data; dollar strengthens against euro, yen
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - Treasury bonds ended little changed Thursday as many participants chose to remain sidelined ahead of Friday's key U.S. employment report
Shortly before 3 p.m. ET, the 30-year bond rose 3/32 to 101-11/32. Its yield, which moves inversely to its price, was unchanged at 6.15 percent. The 10-year Treasury note lost 4/32 to 100-22/32, its yield rising to 6.40 percent from 6.38 percent Wednesday.
With the U.S. economy in a record 108th month of expansion and no apparent signs of a slowdown, the closely watched employment report should provide clues to upcoming monetary policy by the Federal Reserve.
Analysts surveyed by briefing.com forecast the unemployment rate to hold steady at 4.0 percent, with 235,000 new non-farm jobs created in February.
Analysts anticipate the market to perform well if employment data are tame, particularly since recent figures have been very strong. In January, 387,000 non-farm jobs were added to the economy, and the unemployment rate slipped to a 30-year low of 4.0 percent.
"The market is hoping for a more benign figure; it will be a relief," said Tony Cresenczi, senior market strategist at Miller Tabak & Co.
Crescenzi added many traders expect the payroll numbers to be fairly tame in light of "weather-related distortions," in which there were fewer layoffs in January because of warmer-than-usual temperatures.
The Federal Open Market Committee (FOMC), the central bank's policy-making arm, has increased short-term interest rates four times since last June in an effort to control inflation. Analysts widely expect the FOMC to hike rates again by a quarter percentage point when it meets March 21.
Dollar strengthens
Analysts said the rebound in the U.S. dollar provided some support to Treasurys, as a strong dollar enhances the value of U.S. dollar assets.
 Shortly before 3 p.m. ET, the dollar traded at 107.66 yen, up from 107.12 yen Wednesday, a day after setting a one-month low against the Japanese currency.
Meanwhile, the euro changed hands at 96.64 U.S. cents, down from 97.24 cents Wednesday, a 0.6 percent gain in the dollar's value.
But corporate supply and high oil prices limited any movement to the upside. Raytheon Co. (RTN.B: Research, Estimates) issued a giant $2.25 billion debt deal. Due to strong investor demand, the amount was increased from $2 billion. Corporate bonds are seen as attractive as their higher yields could draw investors from Treasurys.
Oil continued to garner investors' attention, as rising prices suggest inflation. In New York, April crude oil futures last traded at nine-year highs of $31.78 a barrel. Oil ministers of producing countries agreed Thursday to increase output in a bid to lower global oil prices.
Economic news shrugged off
The latest economic news had little affect on price movement Thursday. U.S. new home sales slowed in January, falling 4.2 percent to an annual rate of 882,000 from a revised 921,000 rate in December.
In a new report that measures Internet retail sales, consumers spent $5.3 billion on online purchases in the fourth quarter, according to the Commerce Department.
U.S. weekly jobless claims rose 6,000 to 275,000, still signaling a tight labor market.
(Click here for a look at today's CNNfn economic calendar.) 
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