The 10-year Treasury yield decreases while stocks experience a decline.
On Thursday, the momentum behind U.S. Treasury yields decreased as the global stock market recovery stalled.
The yield on the 10-year Treasury decreased by 5 basis points to 3.915% at 5:07 a.m. ET on Wednesday, after climbing away from its lowest level since June 2023 over the previous two days.
The yield on the 2-year note decreased by approximately 6 basis points, to 3.9388%.
Prices and yields move in opposite directions, with one basis point equal to 0.01%.
Despite some easing of nervous sentiment, equity markets remained cautious, leading to lower U.S. stock closures and lower openings in Asia-Pacific and European markets on Thursday.
The weak jobs report has caused jitters about the state of the U.S. economy and whether a recession is imminent.
According to Deutsche Bank analysts, Wednesday was a day marked by market volatility, as an initial sense of optimism following Bank of Japan officials' dovish remarks gradually dissipated throughout the day.
After the sale of $42 billion in 10-year notes by the U.S. Treasury Department on Wednesday, there was soft demand, which contributed to the deterioration.
The jobless claims for the week ending Aug. 3, to be released at 8:30 a.m. ET, will be closely watched by investors seeking more guidance.
Markets
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