Treasuries drifted aimlessly yesterday as investors bided time ahead of today's release of the July employment report. Prices generally ended lower, led by the 30-year bond, which closed down 1/8 of a point, to yield 7.40%.
The jobs report will provide the market with its first comprehensive look at the economy's performance in July. After the employment sector's surprisingly strong reading in June, bondholders are anxious to see if the economy is still creating jobs and fanning potential wage pressures. Against that backdrop, activity in the Treasury market yesterday was dominated by accounts setting up for the employment figures. Dealers and retail accounts closed out some existing positions and established new ones in anticipation of a market-moving number this morning.