U.S. bond yields were little changed on Thursday, as investors hit pause on a rotation from stocks into fixed income.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.270%
was steady at 4.28%. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
3.457%
rose 3 basis points to 3.45%. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.439%
fell 1 basis point to 3.42%.
What’s driving markets
Recent sessions have seen a deepening inversion of the Treasury yield curve, as well as a decline in long dated yields. The 10-year yield on Wednesday reached its lowest level since mid-September.
“From an investor’s perspective, bonds and oil are where the recessionary wake-up calls are ringing,” said Stephen Innes, managing partner at SPI Asset Management.
“Last week’s firm payrolls number plus this week’s surprisingly robust ISM Services survey have continued raising doubts about the path forward for inflation, rates, and the Fed. And with a relative dearth of new macroeconomic information and sentiment still drenched in recession angst, investors continue orienting out of stocks and into bonds and gold as they contemplate the prospect of a still too-strong U.S. economy and if a soft landing is anywhere near achievable.”
Thursday’s U.S. economic calendar features just weekly jobless benefit claims data, ahead of next week’s eagerly awaited November consumer price index release and Federal Open Market Committee decision on interest rates.
