US Government bonds plunge on marginal rise in initial jobless claims

The US Treasuries saw downward pressure across the curve as fewer Americans filed applications for unemployment benefits last week, highlighting that the country's job market remains healthy. Markets now look ahead to ISM manufacturing PMI for further direction.

The yield on the benchmark 10-year Treasury note rose 4 basis points to 1.611 percent, the yield on 5-year note also climbed 4 basis points to 1.222 percent and the yield on short-term 2-year note bounced 2-1/2 basis points to 0.817 percent by 12:50 GMT.

The US Initial jobless claims for the week ending 27 August increased +2k to 263k, just below expectations for a 265k result, as compared to the unrevised 261k reading seen in the week prior.

The 4-week average was reported at 263.0k, down from the unrevised 264.0k reading seen in the week prior. Meanwhile, continuing claims for the week ending 20 August increased to 2.159 million, versus the 2.145 million reading seen prior. The insured unemployment rate held unchanged at 1.6 percent.

Moreover, investors await the Friday's US jobs data as it could be used to anticipate the Fed's most likely step to raise the interest rate.

Meanwhile, the S&P 500 Futures traded 1 points higher at 2,170 by 12:50 GMT.