Treasurys mixed on initial jobless claims, earnings; government auctions seven-year notes

Treasurys mixed on earnings, new jobless claims

NEW YORK — Treasury prices were mixed Thursday after U.S. companies reported strong earnings and the government said new jobless claims fell but remain elevated.

The price of the 10-year note slipped 3.125 cents to $104.281, while its yield was unchanged at 2.99 percent.

The Treasury Department auctioned $29 billion in seven-year notes Thursday. The bid-to-cover ratio, a measure of demand, was 2.78, down from 3.01 for a similar auction last month. Indirect bidders, a measure of foreign demand, fell to about 42 percent from 51 percent.

The government also held auctions this week that boosted supply of two- and five-year notes.

Stocks fell Thursday on disappointment with what was just a slight drop in initial claims for unemployment benefits. Investors largely brushed off earnings reports from Southwest Airlines Co., ExxonMobil Corp., Avon Products Inc. and Sony Corp., all of which topped forecasts, as they awaited the government’s reading Friday on second-quarter gross domestic product.

In other trading, the yield on the two-year note fell to 0.59 percent from 0.62 percent. Its price inched up 3.125 cents to $100.063.

The yield on the 30-year bond edged up to 4.08 percent from 4.07 percent, while its price lost 37.5 cents to $105.

The yield on the three-month Treasury bill was unchanged at 0.14 percent. Its discount rate was 0.15 percent.