The decline in Treasury yields also came amid a broader move away from riskier assets in stock markets. US Treasury yields fell on Thursday as investors kept a close watch on rising tensions in the Middle East and waited for fresh US jobless claims data due later in the day.
US jobless claims data in focus
The 10-year US Treasury yield dropped by more than 7 basis points to 5.0732%. The 10-year Treasury yield is an important benchmark for borrowing costs in the US, including mortgage rates, auto loans and credit card debt, according to CNBC. The 2-year US Treasury yield also moved lower. It fell by more than 5 basis points to 4.7654%. The 30-year US Treasury yield declined by 6 basis points to 5.3751%. Market data listed the 10-year yield at 5.048%, down 0.098 percentage points, while the 2-year yield stood at 4.736%, down 0.087 percentage points. The 30-year yield was at 5.359%, down 0.078 percentage points. The one-month Treasury yield stood at 3.98%, down 0.003 percentage points. The three-month yield fell to 4.156%, down 0.013 percentage points, while the six-month yield declined to 4.34%, down 0.027 percentage points. The one-year Treasury yield dropped to 4.458%, down 0.041 percentage points, according to the market data provided by CNBC. Economists expect 200,000 Americans to have filed initial jobless claims. The estimate, based on a Dow Jones poll of economists, is for the week ended October 17. West Texas Intermediate (WTI) crude futures rose 2.81% to $99.96 a barrel in early trading on Thursday, moving closer to the $100 mark. Prices increased 3.33% to $112.44 a barrel on Thursday. One basis point equals 0.01 percentage points.
Longer-term Treasury yields can also react to geopolitical developments and changes in investor sentiment, according to CNBC. Investors will assess the figures for clues about labour market conditions and the possible direction of US interest rates, according to CNBC. The combination of geopolitical risks, rising oil prices and uncertainty about the labour market is shaping market sentiment as investors assess the outlook for the US economy and interest rates, according to CNBC. The New York Times reported on Wednesday, citing unnamed US officials, that the US and Israel were considering restarting strikes on Iran in a “short but intensive” operation after next month’s US midterm elections.
This yield is closely linked to investor expectations for short-term interest rate decisions by the Federal Reserve, the US central bank. Other US Treasury yields also recorded declines. Yields on shorter-term Treasury securities also fell. Investors are waiting for US initial jobless claims data. The report will show how many people filed for unemployment benefits for the first time, giving investors another indication of the health of the US labour market. Rising Middle East tensions have also put pressure on market sentiment. Treasury yields fell as investors adopted a more cautious approach amid geopolitical uncertainty and weakness in stock markets. Investors are monitoring developments in the Middle East alongside incoming US economic data. Oil prices climbed sharply as concerns about a possible escalation in the Middle East grew. Brent crude, the global oil price benchmark, also rose. The rise in oil prices followed a report about possible renewed US-Israeli strikes on Iran. A basis point is one-hundredth of a percentage point. Treasury yields and bond prices move in opposite directions, meaning bond prices generally rise when yields fall and decline when yields rise.
The US Labor Department is scheduled to release the figures later on Thursday.
