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MW: Treasurys stay up as initial jobless claims rise
 
By Deborah Levine

NEW YORK (MarketWatch) -- Treasurys remained higher Thursday after the Labor Department said initial claims for unemployment benefits rose 1,000 in the last week to 497,000, the highest in seven years. Ten-year note yields fell 7 basis points to 1.75%. Treasurys caught a bid even after the Senate approved a sweetened $700 billion bank rescue package late Wednesday, as concerns turned to the deteriorating U.S economic data and signs of trouble in global markets. Interest-rate futures traders raised bets the Federal Reserve will lower its benchmark borrowing rate by the end of the month. The government's closely-watched monthly jobs report due out Friday is forecast to say 103,000 jobs were lost in September.
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