US Treasury yields fall after the 10-year breaks above 3 percent

  • Markets around the world continue to be on edge over what these trade tensions could mean for Washington and Beijing going forward.
  • Coming up today in terms of data, jobless claims are due out at 8:30 a.m. ET, followed by factory orders at 10 a.m. ET.

U.S. government debt prices ticked higher on Thursday.

The yield on the benchmark 10-year Treasury note was lower at around 2.982 percent at 6:05 a.m. ET, while the yield on the 30-year Treasury bond was in the red at 3.110 percent. Bond yields move inversely to prices.

Central banking news continues to keep bond investors alert on Thursday, after the U.S. central bank held its summer meeting earlier this week.

At the conclusion of its summer policy meeting, the U.S. Federal Open Market Committee decided to hold fire on raising interest rates on Wednesday, however the central bank did choose to upgrade its outlook on the U.S. economy to strong.

In the statement released by the Federal Reserve, the central bank said that the labor market has “continued to strengthen and that economic activity has been rising at a strong rate.” In June, the Fed described economic activity as rising at a “solid rate.”

The meeting comes hot on the heels of recent doses of economic data, including a positive gross domestic product reading of 4.1 percent growth in the second quarter.

Across the Atlantic, the Bank of England is expected to hold a monetary policy meeting on Thursday, with investors expecting the central bank to deliver a rate hike as concerns over the U.K. economy and Brexit weigh.

Coming up today in terms of data, jobless claims are due out at 8:30 a.m. ET, followed by factory orders at 10 a.m. ET.

On the auctions front, the U.S. Treasury will announce the size of two individual bills, both up for auction next week.

Not a Scientific Survey. Results may not total 100% due to rounding.

Elsewhere, politics continues to keep market watchers busy. On Wednesday, the U.S. administration announced that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25 percent, from 10 percent.

Consequently, markets around the world continue to be on edge over what these trade tensions could mean for Washington and Beijing going forward.

Meantime, investors will be keeping a close eye on the yield on the benchmark 10-year Treasury note after it topped 3 percent on Wednesday — the first time it’s reached this level since June.

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