* Oct consumer spending rises by more than expected
* Durable goods orders unexpectedly fall last month
(Adds strategist quote, updates prices)
By Chris Reese
NEW YORK, Nov 25 (Reuters) - U.S. Treasury debt prices
eased on Wednesday after a bigger-than-expected dip in weekly
jobless claims and larger-than-forecast rise in October
consumer spending bolstered hopes of a nascent economic
recovery.
Treasuries losses were tempered however by data showing an
unexpected fall in new orders for long-lasting U.S.
manufactured goods in October, which undermined some
expectations that manufacturing would help lead any economic
recovery.
"(Jobless) claims were under 500,000 and so this is bond
bearish," said David Ader, head of government bond strategy at
CRT Capital Group in Stamford, Connecticut, adding however
"there is a real mix of information here that leaves us feeling
rather neutral about the data to seeing it as a tad soft."
Benchmark 10-year Treasury notes were trading
3/32 lower in price to yield 3.32 percent, up from 3.31 percent
late on Tuesday, while the two-year Treasury note
was unchanged in price to yield 0.74 percent.
The number of U.S. workers filing new applications for
jobless insurance tumbled last week by a surprisingly large
amount to the lowest level in more than a year, according to
government data.
Initial claims for state unemployment benefits slid to a
seasonally adjusted 466,000 in the week ended Nov. 21, from a
revised 501,000 in the prior week, the Labor Department said.
Analysts cautioned however that much of the fall may have
been due to seasonal adjustments. For details see
[ID:nN25548443].
Hopes of an economic recovery were propped up by data
showing U.S. consumer spending rose more than expected in
October as incomes increased. The Commerce Department said
spending increased 0.7 percent, after a revised 0.6 percent
fall in September. October's spending was above market
expectations for a gain of 0.5 percent.[ID:nN25338535]
Tempering those hopes however was government data showing
durable goods orders dropped by 0.6 percent in October after
rising by an upwardly revised 2.0 percent in September.
Analysts had been looking for durable goods orders to rise by
0.5 percent. [ID:nN25342245]
Investors still have plenty to look forward ahead of the
U.S. Thanksgiving Day holiday on Thursday, with the
Reuters/University of Michigan Surveys of Consumers index of
consumer sentiment for November along with October new homes
sales data later on Wednesday morning.
In the afternoon, the Treasury will auction $32 billion of
seven-year Treasury notes in the third and final leg of $118
billion of notes sales this week.
The auctions of two-year and five-year notes earlier this
week were both met with solid demand.
(Reporting by Chris Reese: Editing by Chizu Nomiyama )
((chris.reese@thomsonreuters.com; +1 646 223 6073; Reuters
Messaging: chris.reese.reuters.com@reuters.net))
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