U.S. Treasury yields fell as equities sank and oil prices rose. The 10-year yield dropped 4.9 basis points to 4.843%, while the two-year yield fell 5.6 basis points to 4.525%.
U.S. Treasury yields fell on Thursday as equities sank and oil prices reversed some of Wednesday’s losses, with investors seeking safety and tempering hopes that the U.S. midterm elections would accelerate progress toward peace in the Middle East. The 10-year yield fell 4.9 basis points to 4.843%, and the 30-year yield declined 3 basis points to 5.25%; the two-year yield dropped 5.6 basis points to 4.525%.
Initial claims for state unemployment benefits fell by 6,000 to a seasonally adjusted 189,000 in the week ended October 31, below economists’ forecast of 196,000 and the lowest level in 57 years. Worker productivity grew faster than expected in the third quarter, depressing labor costs. Cleveland Fed President Beth Hammack said more work was needed to bring inflation down to 2%, while Richmond Fed President Tom Barkin said gradual rate increases would make sense.
The two-to-10-year Treasury yield spread steepened to positive 31.4 basis points. The 10-year TIPS breakeven rate was 2.224%, indicating the market sees inflation averaging about 2.2% annually over the next decade.
