Bonds Push Higher Ahead of Jobs Data

U.S. Treasuries rallied Thursday despite improving economic data and a rush of supply as the market found footing in oversold conditions which drew in bargain hunters.

The 30-year settled near 2.965%, the lowest yield/highest price since Late November, having from an overnight low of 3.0545% and 3.045% close Wednesday. The 10-year closed near 2.37% from after a 2.4512% low and close near 2.455%. The five-year went out near 1.865% after a drop to 1.9458% overnight and a 1.9475% close. The two-year closed near 1.182% having run at traded 1.158% and 1.234%.

The curve trade was tightened with the yield differential between the two- and 10-years near 1.19 from 1.23 plus while the yield spread between the five- and 30-years narrowed to 1.10 from 1.11.

Friday’s calendar offers the nonfarm payrolls data as well as the overall unemployment report, hourly earnings and average work week due at 8:30 a.m. ET. The November international trade data is also due at 8:30 a.m. while factory orders data for November is out at 10 a.m.

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