|Day's Range||2.95 - 3.00|
|52 Week Range||2.03 - 3.12|
This year’s rise in government-bond yields is rippling through the economy, affecting everything from mortgage rates to stock performance. Signs of steady economic growth and expectations for rising inflation have helped push the yield on the benchmark 10-year Treasury note this year to its highest level since 2011, leaving U.S. government bonds paying more than the debt from other developed countries. Many investors believe those conditions will persist, with minutes from the Federal Reserve’s May 1-2 meeting showing that central-bank officials could allow inflation to overshoot their 2% target for some time.
U.S. government bond prices rose as investors reassessed the economic landscape following dovish minutes from the Federal Reserve’s May meeting and new tariff proposals from President Donald Trump. Yields fell below 3% Thursday, a day after minutes from the Fed’s latest meeting showed the central bank plans to stay on a gradual path of rate increases even if inflation meets its target. Muted inflation is good for the value of government bonds because it helps maintain the purchasing power of their fixed payments and can keep the Fed from raising interest rates.
U.S. stocks finish in the red on Thursday as a sharp decline in the energy-related shares pressured the broader market.
NEW YORK (AP) — U.S. stocks finished mostly lower Thursday as energy companies skidded along with oil prices. The market dropped after President Donald Trump said he canceled a meeting with North Korean leader Kim Jong Un, but recovered most of those losses.
Treasury prices rose, pushing yields lower, on Thursday to extend their rally after trade concerns and minutes from the Federal Reserve’s recent meeting stoked appetite for U.S. government paper. The 10-year Treasury note yield(XTUP:TMUBMUSD10Y=X) fell 2.2 basis points to 2.981%, pushing below the key 3% level, according to WSJ Market Data Group. The 30-year bond yield(XTUP:TMUBMUSD30Y=X) fell 3.8 basis points to 3.130%.
Gold rallied Thursday, settling above the key $1,300-an-ounce level for the first time in over a week, as the U.S. stock market, dollar and Treasury yields declined following President Donald Trump’s cancellation of a planned meeting with North Korean leader Kim Jong Un. “It seems obvious that the spike in gold is due to the cancellation of the summit with North Korea,” Brien Lundin, editor of Gold Newsletter, told MarketWatch.
U.S. government debt prices were mixed on Thursday, as investors awaited the release of fresh economic data and Treasury auctions.
Treasury prices rose as an uptick in geopolitical tensions helped to drive investors into sovereign debt. Yields, which fall as bond prices rise, declined overnight as investors weighed uncertainty over a potential summit with North Korea, trade talks between the U.S. and China, and questions over the Turkish central bank’s reluctance to raise interest rates to combat high inflation. The resulting pullback across relatively risky assets—which pulled stocks in emerging markets and Europe lower—helped drive up demand for Treasurys, whose fixed returns look particularly attractive to investors when the outlook for global growth looks uncertain.
U.S. stocks ended with small gains on Wednesday after minutes from the Federal Reserve's latest meeting suggested higher inflation may not result in faster interest rate hikes. Most Fed policymakers thought it likely another rate increase would be warranted "soon" if the U.S. economic outlook remains intact, and many participants saw little evidence of general overheating of the labor market, minutes of the central bank's last policy meeting showed. Stocks turned higher after the news, with rate-sensitive S&P 500 utilities (.SPLRCU) and real estate (.SPLRCR) ending the day with the biggest percentage gains.
Treasury yields added to their decline on Wednesday after the Federal Reserve released the minutes from its May 1-2 meeting. The 10-year Treasury note yield fell 4.4 basis points to 3.021%, according to Tradeweb data. The 2-year note yield was down 2.3 basis points to 2.569%.
Federal Reserve officials said the economic outlook warranted another interest-rate hike “soon” and signaled they would welcome a modest overshoot of their 2 percent inflation target, indicating they’re in no rush to tighten more aggressively. “Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate for the committee to take another step in removing policy accommodation,” minutes released Wednesday of the Federal Open Market Committee’s May 1-2 meeting said. A temporary period of inflation “modestly above 2 percent would be consistent with the committee’s symmetric inflation objective and could be helpful in anchoring longer-run inflation expectations,” according to the minutes.