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Treasury yields are flat as investors await more economic data
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U.S. Treasury yields were largely unchanged on Thursday as investors awaited some economic data and weighed the state of the U.S. economy.
At 6:19 a.m. ET, the benchmark 10-year Treasury yield was flat at 4.04%, while the 30-year Treasury bond yield was up less than a basis point to 4.694%. The 2-year Treasury note yield was down less than 1 basis point to 3.466%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are awaiting some economic data, including Thursday’s jobless claims, out at 8:30 a.m. ET. They will also look ahead to the producer price index on Friday, set to be released by the Bureau of Labor Statistics in the morning.
Ian Lyngen, BMO Capital Markets’ head of U.S. rates strategy, said in a note on Wednesday night that the data is not expected to move the bond market, which means investors will be more focused on political news and headlines as the end of the month approaches.
Lyngen said that the jobless figures are expected to continue to be within a “historically” low range.
“With inflation back in the driver’s seat as a determinant of the timing of rate cuts, the Fed’s assumption that labor market conditions have stabilized has been reinforced by the trend in the jobless claims series. The ‘low-hire, low-fire’ narrative persists amid the array of risks facing the economic outlook,” he added in the note.