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Treasury yields climb off their lows after strong economic data

Treasury yields climbed slightly higher on Friday as investors digested fresh data for further clues about the pace of the economic recovery.

The yield on the benchmark 10-year Treasury note were flat at about 0.65%, after hitting its lowest level since Aug.12 earlier in the session. The yield on the 30-year Treasury bond was also little changed at 1.37%. Yields move inversely to prices.

Yields turned higher after data showed U.S. manufacturer growth rebounded this month to post its fastest improvement since January 2019.

The U.S. manufacturing PMI (purchasing managers’ index) jumped to 53.6 in August — a 19-month high — from 50.9 in July, according to IHS Markit. Any reading above 50 signals an expansion. Meanwhile, IHS services business activity rose to 54.8 from 50.0 from July, marking a 17-month high. 

Meanwhile, new home sales in July were up 24.7% compared with June, marking the biggest month jump on record, dating back to 1968. according to the National Association of Realtors.

However, U.S. jobless claims on Thursday exacerbated fears of a slower recovery from the coronavirus-led downturn.

The Labor Department showed that the number of Americans filing for jobless benefits for the first time climbed back above 1 million last week.

The data ushered some market participants toward so-called safe haven assets in the previous session, such as U.S. debt. It also amplified the pressure on U.S. lawmakers, with Republicans and Democrats at loggerheads over the next round of pandemic relief legislation.

There are no Treasury auctions scheduled on Friday.

— CNBC’s Thomas Franck contributed to this report.

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