Following the notable downward move seen in the previous session, treasuries regained some ground during trading on Thursday.
After seeing early strength, bond prices pulled back near the unchanged before moving back to the upside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.7 basis points to 2.986 percent.
Treasuries may have benefited from bargain hunting after the ten-year yield closed above 3 percent for the first time in well over two months on Wednesday.
Trading activity was somewhat subdued, however, as traders looked ahead to the release of the Labor Department’s closely watched monthly employment report on Friday.
Employment is expected to increase by 190,000 jobs in July after jumping by 213,000 jobs in June, while the unemployment rate is expected to dip to 3.9 percent after rising to 4.0 percent in the previous month.
A day ahead of the release of the monthly report, the Labor Department released a report showing a modest increase in initial jobless claims in the week ended July 28th.
The report said initial jobless claims inched up to 218,000, an uptick of 1,000 from the previous week’s unrevised level of 217,000. Economists had expected jobless claims to rise to 220,000.
A separate report from the Commerce Department showed factory orders climbed by 0.7 percent in June, matching economist estimates.
The Labor Department’s monthly jobs report is likely to be in focus on Friday, overshadowing separate reports on the U.S. trade deficit and service sector activity.