Treasury yields were flat on Thursday as investors awaited economic data that could provide clues as to how the US economy is faring if headwinds continue.
The benchmark 10-year Treasury note was trading at around 3.473% as of 5:47 am ET. The 2-year Treasury yield rose by almost 1 basis point to 4.143%.
Yields and prices have an inverse relationship and one basis point equals 0.01%.
A series of key economic reports are expected on Thursday, which investors will scour for clues about the state and prospects of the US economy. Many are concerned about the potential strains of high inflation and higher interest rates weighing on the economy.
Gross domestic product data is expected for the final quarter of 2022, as well as durable goods orders and home sales reports for December. Also, weekly initial jobless claims are due.
Investors will also be following additional earnings reports closely, paying particular attention to companies’ future forecasts, which could be indicative of their expectations for the economy. American Airlines and Intel are among those reporting Thursday.
Fears of a recession have grown louder in recent months as many investors believe the pace of the Federal Reserve’s rate hikes could cause the economy to slow down.
The next Fed meeting is on January 31st and February 1st. Markets expect the central bank to hike interest rates further by 25 or 50 basis points as its fight against persistent inflation continues.