FX.co ★ Treasuries Close Slightly Lower Following Lackluster Session

Treasuries previously saw gains but presented a mediocre performance on Thursday. Bond prices were unstable, causing a slight reduction by the day's end. Consequently, there was a minor increase of 1 basis point in the yield on the benchmark ten-year note, which is inversely related to its price, to 4.206 percent.

The erratic session was largely due to traders being hesitant to make sizable moves ahead of the upcoming Commerce Department report. This report - set to be released Friday - includes personal income, spending, and inflation data, which is highly valued by the Federal Reserve.

This inflation data could potentially alter the interest rates outlook. However, markets won't be able to respond immediately due to Good Friday market closure, pushing the reaction to the following Monday.

The forecast for the data predicts a slight rise in consumer price growth from January's 2.4% to 2.5% in February. Moreover, the core consumer price growth rate is expected to remain steady at 2.8%.

Friday also features a prearranged discussion involving Fed Chair Jerome Powell and the Federal Reserve Bank of San Francisco Macroeconomics and Monetary Policy Conference.

Amid the concentration on the impending inflation data, traders overlooked a plethora of US economic data.

A report by the Labor Department demonstrated an unexpected minor decrease in initial claims for U.S. unemployment benefits for the week ending March 23rd. Initial jobless claims dropped to 210,000, down from the revised level of 212,000 from the previous week.

Furthermore, a report from the Commerce Department detailed a greater than predicted growth of the U.S. economy in Q4 2023. Newly revised data exhibited a GDP growth of 3.4% compared to a formerly reported 3.2% increase.

The National Association of Realtors also reported a significant recovery in pending home sales during February. The index rose by 1.6% to 75.6 after a sharp 4.7% fall the previous month.

Finally, the University of Michigan published revised data that showcased an unexpected boost in U.S. consumer sentiment during March. The consumer sentiment index increased to 79.4 from a preliminary 76.5, which exceeded the final February reading of 76.9.

The post-holiday inflation data and the monthly jobs report will likely play a substantial role and attract attention the following week.