US Treasuries rose on Thursday as investors weighed the prospect of further rate hikes by the Federal Reserve and awaited fresh economic data.
As of 5:46 am ET, the benchmark 10-year Treasury yield was up 2.6 basis points to 4.022%, trading above the 4% mark on levels last seen in early November.
The 2-year Treasury yield last traded at 4.887%. By the start of the session, it had risen as high as 4.937%, a level last seen in mid-2006, according to CNBC calculations based on Refinitiv data.
Yields and prices have an inverse relationship and one basis point equals 0.01%.
treasuries
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | 1 Month US Treasury Notes | 4.60% | +0.007 | 0.00% |
| US3M | 3 Month US Treasury Notes | 4.898% | +0.031 | 0.00% |
| US6M | 6-month US Treasury Notes | 5.174% | +0.018 | 0.00% |
| US1Y | 1-year US government bonds | 5.077% | +0.018 | 0.00% |
| US2Y | 2-year US government bonds | 4.883% | -0.006 | 0.00% |
| US10Y | 10-year US government bonds | 4.016% | +0.02 | 0.00% |
| US30Y | 30-year US government bonds | 3.984% | +0.031 | 0.00% |
Investors considered the likelihood of further rate hikes and rates staying higher for longer.
On Wednesday, Atlanta Fed President Raphael Bostic released a statement saying he believes rates will need to go higher and remain elevated “well into 2024” as the fight against inflation continues.
Meanwhile, Minneapolis Fed President Neel Kashkari hinted that more rate hikes may be on the cards and that the Fed may accelerate the pace of rate hikes again.
At its last meeting, the central bank hiked rates by 25 basis points. This marked a slowdown from the previous five increases, which included four consecutive 75 basis point increases followed by a 50 basis point raise.
Many investors are concerned about the pace of interest rate hikes, which are dragging the US economy into recession.
Also on Wednesday, the ISM Manufacturing Index for February was up 47.7%, showing economic activity in the sector contracted over the month.
On Thursday, investors will closely monitor the release of weekly initial jobless claims and comments from Fed Governor Christopher Waller.
— CNBC’s Ganesh Rao contributed to this report