Bond Report: 10-year Treasury Note Yield Pulls Back From 4-year High

Treasury yields dipped early Thursday, giving back some of the prior day’s advance that came after Federal Reserve minutes signaled more interest-rate hikes in the offing.

See: Fed minutes say stronger outlook increases the chance for more rate hikes

What are key benchmarks doing?

The yield on the 10-year Treasury note TMUBMUSD10Y, -0.75% was down 2.7 basis points to 2.924%, after notching a fresh four-year high above 2.94% on Wednesday.

The two-year note yield TMUBMUSD02Y, +0.00% dipped by less than 1 basis point to 2.262%, while the rate for the 30-year bond TMUBMUSD30Y, -0.51% edged lower by 1.8 basis pints to 3.205%.

Bond prices and yields move in the opposite direction.

What are strategists saying?

“The bond market quickly grabbed onto the fact that the Fed could tighten monetary policy faster than previously anticipated,” said Fiona Cincotta, senior market analyst at City Index, in a note about the reaction to the minutes from the U.S. central bank’s January meeting.

“Bond yields shot to a fresh 4-year high of 2.94% sending jitters through the stocks markets, which saw the Dow reverse,” she added.

What data and Fed speakers are in focus?

Investors may pay close attention to Fed officials scheduled to speak Thursday, including New York Fed President William Dudley, due to make remarks at 10 a.m. Eastern Time, and Atlanta Fed President Raphael Bostic, on deck at 12:10 p.m. Eastern.

Earlier on Thursday, the Fed’s vice chairman for supervision, Randall Quarles, said in Tokyo that recent low inflation readings are not “a great concern,” and the economy is “performing very well.”

A report on weekly jobless claims is slated to arrive at 8:30 a.m. Eastern, with economists polled by MarketWatch expecting 230,000 claims, then a January reading on leading economic indicators is due to hit at 10 a.m. Eastern.

RECENT NEWS

What A Rising VIX Means For Pension Funds

Wall Street’s latest selloff has moved beyond a technology-sector wobble and become a broad market event. The Nasdaq C... Read more

Behaviour Cannot Fix A Portfolio Construction Flaw

A Retiree Shouldn't Be Asked to Behave Their Way Out of a Portfolio Construction Problem Why behavioural coaching shoul... Read more

Behavioural & Retirement Portfolio Resilience

Behavioural Survivability and Retirement Portfolio Resilience Why the lived experience of market recovery matters as mu... Read more

Australia's Rate Rise Bites: Highest In 15 Years

The Reserve Bank of Australia has lifted interest rates to their highest level since 2011, and its governor admits the w... Read more

October Retirement Portfolio Resilience Assessment

Markets stabl Read more

Gyrostat September Retirement Portfolio Resilience Assessment

September Retirement Portfolio Resilience Assessment Markets have fallen. The price of risk has risen. ... Read more