Bond Prices Turn Slightly Lower

U.S. Treasury prices were bent back slightly lower Thursday following an upside surprise on the February new homes sales, which somewhat countered the miss on the earlier jobless claims data that surged well beyond expectations. Traders note there maybe a lid on activity as the market bumps through the back-and-forth on the potential House vote on the Affordable Care Act.

The 30-year yield recently traded 3.02% from an early 3.034% high, 3.0016% low and 3.01% close Wednesday. The 10-year has was near 2.408% against a 2.4223% high, 2.3873% low and 2.43% close. The five-year is near 1.954% from a 1.9565% high, 1.915% low and 1.93% close. The two-year slipped to near 1.26% from a 1.2315% low and 1.252% close.

The curve trade has edged along a steeper slope with the yield gap between the two- and 10-years widened to 1.15 from 1.14 Wednesday, but remains near levels last seen Nov. 8, The yield spread between the five- and 30-years has been edging either direction, recently near unchanged at 1.08.

By Caroline Williams