U.S. Treasury yields rose slightly on Thursday as Wall Street awaits key jobs data due later in the session.
The yield on the US Treasury at 10 years rating – the key benchmark for U.S. government borrowing – rose more than 2 basis points to 4.573%.
THE 2-year Treasury bill the yield, which more closely tracks the Federal Reserve’s short-term interest rate policy, rose more than 2 basis points to 4.158%. The most dated 30-year Treasury bond the yield also added 2 basis points to 5.107%.
One basis point is 0.01%, and yields and prices move in opposite directions.
Investors will watch retail sales and jobless claims data at 8:30 a.m. ET for further signs on the health of the U.S. economy.
Bond markets were given a disinflationary boost Wednesday after the product price index fell 0.3% in June, a softer reading than expected. Economists surveyed by Dow Jones expected the measure to remain unchanged for the month. Yields fell a few basis points across the board following this news.
As with consumer prices, the index benefited of falling energy costs, especially as oil fell due to the brief pause in tensions between the United States and Iran. Goods prices posted a monthly decline of 1.4%, the biggest decline since July 2022, with energy falling 6.4% and final demand food prices down 0.6%.
“The Fed’s war on inflation is by no means over, as Fed Chairman Warsh made clear in his testimony yesterday, but there is good news from the front and the odds of a Fed rate hike should continue to decline as factory-level inflation tends to fall and producers will not pass their higher costs onto the consumer as much as we previously thought,” said Chris Rupkey, chief economist at FWDBONDS.
— CNBC’s Jeff Cox and Sean Conlon also contributed to this report.
