U.S. Treasury yields fell sharply on Wednesday after positive economic data reduced investors’ appetite for riskier assets, such as stocks and emerging markets, sending investors flocking to safer havens like Treasuries that come with higher yields. The yield on the benchmark 10-year U.S. Treasury bond ended the day down 5 basis points at 2.85 percent after rising earlier in the session to as high as 2.90 percent, its highest level since late July. The yield on the 30-year U.S.
U.S. Government Bonds Were More in Demand Thursday
U.S. government debt prices were higher Thursday morning as investors reacted to the newest batches of good economic data.
At 2:30 am Eastern Standard Time, the yield on the benchmark 10-year Treasury note was 2.7337%, while the yield on the 30-year Treasury bond was 2.9710%. When yields increase, prices will decrease. New data released Wednesday revealed a strong turnaround in the American service sector, which helped assuage fears about the US economy, thereby making the stock market rise that day.
Initial claims figures and international trade figures will be released at 8:30 am ET on Thursday.
Loretta Mester, of the Cleveland Fed, speaks at 12 pm ET. This past Wednesday, the President of the St. Louis Federal Reserve Bank told CNBC that he does not believe the U.S. is in a recession and that the Fed will continue to raise rates to counter inflation.