US Treasuries stall gains on buoyant jobless claims, Philly Fed manufacturing index

The US Treasuries gains stalled Friday on modest improvement in both initial jobless and Philadelphia Fed manufacturing activity data. The yield on the benchmark 10-year Treasury note rose 3 basis points to 1.568 percent, the yield on 5-year note climbed 3-1/2 basis points at 1.146 percent and the yield on short-term 2-year note also bounced 3 basis points at 0.734 percent by 13:00 GMT

The US Initial jobless claims for the week ending 13 August decreased -4k to 262k, in line with expectations for a +2.0 result as compared to the unrevised 266k reading seen in the week prior, just below expectations for a 265k result. Meanwhile, the insured unemployment rate held unchanged at 1.6 percent.

Moreover, the August Philadelphia Fed index revealed an increase in the headline measure to +2.0, versus the unrevised -2.9 reading seen in July.

The US bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Federal Reserve's target.

The crude oil prices climbed for a seventh straight day, with Brent crude rising above $50 for the first time in six weeks as the world's biggest producers prepared to discuss a possible freeze in production levels. The International benchmark Brent futures rose 0.02 percent to $50.90 and West Texas Intermediate (WTI) jumped 0.27 percent to $48.35 by 12:00 GMT.

Meanwhile, the S&P 500 Futures traded 5.50 points lower at 2,178 by 13:00 GMT.