U.S. Treasury yields nudged higher on Thursday as investors digested the ongoing deluge of corporate earnings and continued to assess the outlook for growth and inflation.
At around 6:20 a.m. ET, the yield on the benchmark 10-year Treasury note climbed to 3.0471% while the yield on the 30-year Treasury bond rose to 3.1754%. Yields move inversely to prices.
Treasurys
The yield on the 2-year note retreated to 3.2338%, but remained above the 10-year, continuing the inversion of the closely-watched 2-year/10-year yield curve.
Yield-curve inversions — when shorter-term government bonds have higher yields than longer-term ones despite carrying lower risk — are often viewed by markets as signs that a recession is imminent.
Markets are attempting to gauge whether the Federal Reserve will hike interest rates by 75 basis points or the more aggressive 100 basis points at its policy meeting next week, as it looks to rein in sky-high inflation.
Risk sentiment among investors has remained volatile, but Wall Street has been enjoying a July rebound and major stock indexes closed out a third consecutive positive trading session on Wednesday. However, stock futures slipped slightly Thursday morning on a new round of slightly below par earnings.
Data releases Thursday will include last week’s jobless claims figures and the Philadelphia Fed manufacturing index for July.
Auctions will be held Thursday for $55 billion of 4-week Treasury bills and $50 billion of 8-week bills, along with $17 billion of 10-year TIPS (Treasury Inflation-Protected Securities).
