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Treasury yields off record lows

Treasury yields off record lows

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U.S. government debt prices ticked lower Thursday morning as investors monitored U.S.-China trade developments and looked ahead to fresh economic data.

At 4:00 a.m. ET, the yield on the benchmark 10-year Treasury note was trading higher at 1.4827%, while the yield on the 30-year Treasury bond was also higher at 1.9600%. Bond yields move inversely to prices.

U.S. Markets Overview: Treasurys chart

Market focus is largely attuned to global recession worries, with investors closely monitoring developments in U.S.-China trade talks and looking for direction on interest rates from central banks. A spokesperson for China’s Commerce Ministry said Thursday that both sides are discussing talks that were scheduled to be held in September, according to Reuters, adding that China was willing to resolve the issue calmly,

On Wednesday, the rate on the benchmark 30-year Treasury bond sank to an all-time low, while the U.S. yield curve inverted even further. The move extended losses from earlier in the week, when the spread registered its lowest level since 2007.

A 10-year rate below the 2-year yield is viewed by fixed income traders as an important recession prognosticator, marking an unusual phenomenon as bondholders receive better compensation in the short term.

On the data front Thursday, the latest weekly jobless claims, a second reading of second-quarter GDP (gross domestic product) and advance economic indicators for July are all scheduled to be released at 8:30 a.m. ET. Pending home sales for July will follow slightly later in the session.

On the auctions front, the Treasury is set to auction a 13-week and a 26-week bill.

CNBC’s Sam Meredith contributed to this report.


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