Treasury yields rise ahead of GDP update
The 10-year US Treasury yield hit a high of 1.55% on Thursday morning, after falling from recent highs from the previous session, ahead of a third-quarter gross domestic product update.
The benchmark 10-year Treasury bill yield rose 2 basis points to 1.5536% at 4 a.m. ET. The yield on the 30-year Treasury bill climbed 1 basis point to 1.9527%. Yields move in the opposite direction of prices and 1 basis point equals 0.01%.
The 10-year rate fell below 1.6% in Wednesday’s trading session to as low as 1.52%.
Treasury yields have fluctuated as investors remain concerned about the risk of “stagflation,” where inflation rises but economic growth slows.
Dan Lacalle, chief economist at Tressis Gestion, told CNBC’s “Squawk Box Europe” Thursday that the risk of stagflation was increasing but was not yet clear “as growth expectations remain relatively stable for 2022”.
Nonetheless, Lacalle said the bond market was starting to react to the risk of stagflation.
The 10-year yield started to rebound Thursday morning, with the Commerce Department due to release annualized GDP growth data for the third quarter at 8:30 a.m. ET. Economists polled by Dow Jones expect the economy to have grown only 2.8% in the previous quarter.
The Labor Department is also expected to release the number of jobless claims filed during the week ended Oct. 23 at 8:30 a.m. ET.
Pending home sales data for September should then be released at 10 a.m. ET.
Auctions are scheduled to take place Thursday for $ 60 billion in four-week bills, $ 25 billion in eight-week bills and $ 62 billion in seven-year notes.
– CNBC’s Yun Li contributed to this market report.