US Treasuries plunge as jobless claims fall to lowest in five weeks, durable goods orders stronger-than-expected

The US Treasuries plunged Thursday as initial jobless claims fell to the lowest level in five weeks that highlighted the improvement in the labour market. Also, stronger-than-expected durable goods sale drove out investors from safe-haven buying.

The yield on the benchmark 10-year Treasury note rose 1- ½ basis points to 1.571 percent, the yield on 5-year note jumped 2 basis points to 1.156 percent and the yield on short-term 2-year note climbed 1-1/2 basis points to 0.778 percent by 12:50 GMT.

However, markets look to be holding steady in advance of Fed Chair Yellen’s Jackson Hole speech on Friday.

US Initial jobless claims for the week ending 20 August decreased -1k to 261k, below expectations for a 265k result as compared to the unrevised 262k reading seen in the week prior. Meanwhile, continuing claims for week ending 13 August decreased to 2.145 million, versus the 2.175 million reading seen prior. The insured unemployment rate held unchanged at 1.6 percent.

Moreover, the July durable goods report revealed an overall +4.4 percent m/m reading, above market expectations for a +3.7 percent m/m result, as compared to the revised -4.2 percent m/m reading that occurred in June (previous -4.0 percent m/m).

Meanwhile, the S&P 500 Futures traded 5.25 points lower at 2,169.75 by 12:50 GMT.