17.04.201416:58:00UTC+00Treasuries Fall Sharply On Upbeat Data, Easing Ukraine Worries

Treasuries moved sharply lower in an abbreviated session on Thursday amid upbeat economic data and easing concerns about the situation in Ukraine.

After moving lower morning trading, treasuries accelerated to the downside in the afternoon before close firmly in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 8.4 basis points to 2.721 percent.

The early weakness among treasuries came following the release of some better than expected U.S. economic data, including a report from the Labor Department showing a smaller than expected increase in weekly jobless claims.

The report said initial jobless claims inched up to 304,000, an increase of 2,000 from the previous week's revised level of 302,000. Economists had expected jobless claims to climb to 315,000 from the 300,000 originally reported for the previous week.

Even with the upward revision, the number of jobless claims in the previous week was still at the lowest level in almost seven years.

A separate report from the Philadelphia Federal Reserve showed that regional manufacturing activity has accelerated by much more than anticipated in the month of April.

Treasuries accelerated to the downside amid news that officials from the U.S., Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine.

Secretary of State John Kerry said the plan is aimed at ending the conflict in eastern Ukraine but stressed that no agreement has been reached on Crimea.

According to Kerry, the deal requires all pro-Russian armed groups in eastern Ukraine to immediately lay down their weapons and return all the buildings they have seized to their rightful owners or national authorities.

In return, the government of Ukraine will offer amnesty to protesters who have not committed any capital crimes.

Next week's trading may be driven by any further developments in Ukraine as well as economic reports on new and existing home sales and durable goods orders.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.