Momentum behind U.S. Treasury yields waned on Thursday, as a recovery rally in global stock markets stalled and investors looked ahead to the release of key economic data.
The yield on the 10-year Treasury was around 4 basis points lower at 3.929% at 8:21 a.m. ET. The yield on the benchmark note had been climbing away from its lowest level since June 2023 over Tuesday and Wednesday.
The yield on the 2-year note was down nearly 5 basis points at 3.953%.
Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.
Equity markets appeared to retain some of the nervous sentiment that caused a worldwide sell-off at the start of August. U.S. stocks closed lower on Wednesday, helping send most Asia-Pacific and European markets lower on Thursday.
That sentiment includes jitters about the state of the U.S. economy and whether a recession is looming, following a weak jobs report.
Analysts at Deutsche Bank said in a note that Wednesday was “another topsy-turvy August day for markets, as an initially buoyant mood following dovish remarks from [Bank of Japan] officials … slowly faded through the course of the day.”
