New Economic Indicators Cause U.S. Treasury Bond Yields to Rise
Investors are becoming increasingly cautious about the state of the economy, and this is reflected in the recent increase in U.S. Treasury bond yields. The 10-year Treasury yield rose by over 7 basis points to 4.292%, while the 2-year yield was up approximately 5 basis points at 4.756%. One basis point is equivalent to 0.01%.
Recent economic indicators, such as initial jobless claims data showing an increase from the previous week and housing starts and permits that were lower than expected, have contributed to signs of an economic slowdown. Additionally, the Philadelphia Fed Manufacturing Index had a worse-than-expected reading.
New claims for unemployment benefits in the U.S. rose more than anticipated to 229,000 for the week ending June 1st, indicating a possible impact on consumer spending and business investment decisions. Despite raising borrowing costs in 2022 and 2023, Minneapolis Federal Reserve President Neel Kashkari expressed surprise over the performance of the U.S job market on CBS’ “Face the Nation” program, stating that he expects further cooling of the economy but hopes for a balanced economic situation in the future.
Here’s a snapshot of current Treasury yields for various maturities:
– U.S. 1 Month Treasury: -0.011%
– U
