Treasury yields finished mostly higher on Thursday after data showed the U.S. economy grew steadily this month.
What happened
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The yield on the 2-year Treasury
BX:TMUBMUSD02Y
rose 5.9 basis points to 4.712%, from 4.653% on Wednesday. Thursday’s level is the highest since Dec. 12, based on 3 p.m. Eastern time figures from Dow Jones Market Data. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was marginally higher at 4.326%, versus 4.323% on Wednesday. Thursday’s level is the highest for the 10-year rate since Nov. 30. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
dipped 3 basis points to 4.461%, from 4.491% on Wednesday.
What drove markets
Data released on Thursday showed that weekly initial jobless-benefit claims fell to a five-week low of 201,000 in mid-February, signaling that the labor market remains strong. In addition, a pair of S&P Global business surveys found that the economy expanded at an above-average rate in February.
See also: Wall Street is bracing for more strong U.S. economic and inflation data next week
Meanwhile, Treasury’s $9 billion auction of 30-year Treasury inflation-protected securities, or TIPS, came in rather strong on Thursday, according to Tom di Galoma, co-head of global rates trading for BTIG in New York. The results were in line with the performance that new 30-year TIPS auctions tend to have had, on average, since 2015, he said via phone.
In remarks made on Thursday, Federal Reserve Vice Chair Philip Jefferson, the No. 2 official at the central bank, said that he thinks officials can begin to cut interest rates in 2024. Separately, Philadelphia Fed President Patrick Harker said a near-term rate cut is unlikely.
What analysts are saying
“With concerns over the persistence of price pressures reignited by the last CPI [consumer-price index] report and the robust labor market (as evidenced by the latest NFP [nonfarm payrolls] as well as today’s initial jobless-claims data), policymakers will not want to rush with cutting rates, in our view. Our June call holds,” said Roman Ziruk, a senior market analyst at global financial-services firm Ebury.
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