Bonds retreat on jobless claims
Treasurys dip after surprise drop in unemployment reading points to stability in labor market; dollar falls.
NEW YORK (CNNMoney.com) -- Bonds fell Thursday after a weekly unemployment report suggested stability in the job market.
The dollar weakened against the euro and the yen.
The benchmark 10-year note lost 6/32, or $1.88 on a $1,000 note, to yield 4.78 percent, up slightly from 4.76 late Wednesday.
The 30-year tumbled 12/32, or $3.75 on a $1,000 note, to yield 4.91 percent, up from 4.88 the previous session
The five-year note lost 3/32 to yield 4.75 percent, while the two-year note was little changed, yielding 4.86 percent.
The Labor Department reported that jobless claims fell to 299,000 last week, down from 309,000 the previous week. Economists surveyed by Briefing.com had forecast a slight rise in claims to 310,000.
Recent signs of economic stability, along with a string of Fed policymakers warning about the threat of inflation, have fueled speculation that the central bank may not be finished raising interest rates.
In addition to the unexpected drop in jobless claims, a report released Wednesday showed a surprise jump in housing starts, suggesting the real estate market may be more resilient than previously thought.
The Fed is scheduled to meet next Tuesday and Wednesday.
In currency trading, the euro bought $1.2627, up from $1.2534 late Wednesday. The dollar bought ¥118.14, down from ¥118.92 the previous session.