US TREASURIES traded with little direction or conviction on Thursday. Even the late session rebound of equities failed to reignite a flight from government fixed income, as the complex closed near unchanged. The short end of the yield curve appeared to fare better today as traders will likely be somewhat sidelined, as they await the results of $123 billion of Treasuries coming to auction.

The markets failed to gain any perspective from data releases on Thursday. Strong earnings and a slightly higher reading on US leading indicators were countered by a greater number of new weekly unemployment claims. There may be a brief uptick in activity on Friday after the release of existing home sales. However trading volumes should remain relatively light ahead of next week's auction-barring any unforeseen reactions to the home sale numbers or comments from Federal Reserve Chairman Ben Bernanke.

Technically, little has changed, as markets continue to range trade between established, near term support and resistance levels. A break of support at 119-04 should allow for a test of 118-24. Resistance remains near current level at 120-24.