TREASURIES-Bond prices edge back into plus column
NEW YORK, July 3 (Reuters) - U.S. Treasuries edged back into positive territory on Wednesday on news of a larger-than-forecast May U.S. trade deficit, a figure pointing to weaker gross domestic product (GDP) growth in the second quarter.
"The larger trade deficit means downward revisions to Q2 GDP estimates," said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.
The benchmark 10-year Treasury note was last up 1/32, with its yield at 2.47 percent.
The firmer tone emerged even though the U.S. Labor Department said new claims for jobless benefits fell 5,000 last week to 343,000, news that normally would be bearish for bonds.
"Bottom line, (the jobless) claims (report) was as expected with revisions and isn't for the non-farm paryolls survey week anyway," Lyngen said. "The trade deficit was much wider than expected. The drop in exports will detract from Q2 GDP."