U.S. Treasury yields fall as investors await jobs data and track Middle East risks
Bond markets are trading cautiously on Thursday as investors weigh geopolitical uncertainty alongside fresh U.S. labor data due later in the session. The drop in Treasury yields comes as oil prices climb sharply and risk appetite weakens across broader markets.
Highlights
- U.S. 10-year Treasury yield drops over 7 basis points to 5.0732%, 2-year falls 5 basis points to 4.7654%, as investors await jobless claims data.
- WTI futures rise 2.81% to $99.96 and Brent crude gains 3.33% to $112.44, with oil nearing $100 amid heightened Middle East tensions.
- The prospect of post-midterm U.S.-Israel strikes on Iran, reported by the New York Times, intensifies risk-off sentiment and drives flows into safe-haven Treasurys.
Treasury moves and key market drivers
As reported by CNBC, yields on U.S. government debt move lower on Thursday as investors monitor tensions in the Middle East and wait for initial jobless claims data from the Labor Department.The yield on the 10-year U.S. Treasury, a benchmark for mortgages, auto loans and credit card debt, is down more than 7 basis points at 5.0732%. The 2-year Treasury note, which tracks expectations for short-term Federal Reserve rate decisions more closely, is more than 5 basis points lower at 4.7654%. The 30-year U.S. Treasury yield, which often reacts to geopolitical developments, falls 6 basis points to 5.3751%.
Economists polled by Dow Jones expect initial jobless claims to total 200,000 for the week ended Oct. 17. The retreat in yields coincides with a broader risk-off tone in equity markets as investors position for fresh signals on the U.S. economy.
Oil surge adds to risk-off sentiment
Energy markets are also adding to investor caution on Thursday. West Texas Intermediate futures rise 2.81% to $99.96 a barrel in early trade, moving closer to the $100 mark, while Brent crude gains 3.33% to $112.44.The market moves follow a New York Times report, citing unnamed U.S. officials, that the U.S. and Israel are considering resuming strikes on Iran in a "short but intensive" operation after next month’s midterm elections. Higher oil prices and elevated geopolitical tensions are reinforcing demand for safer assets, helping pull Treasury yields lower.
In our earlier article on Treasury yields reacting to September inflation data, we explained how a hotter-than-expected CPI reading still coincided with a drop in benchmark yields as markets recalibrated Fed rate expectations. That piece also highlighted how energy-driven price pressures and upcoming releases like PPI, retail sales, and jobless claims were shaping rate bets ahead of the next Fed decision.
Latest Labor Market News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
