The yield on the 10-year Treasury eased Thursday from the near three-month highs reached in the previous session, as traders continue to digest the trajectory of interest rate cuts.
The 10-year Treasury yield slid more than 3 basis points to 4.208%, while the 2-year Treasury fell more than one basis point to 4.072%.
Yields move inversely to prices. One basis point equals 0.01%.
The benchmark 10-year Treasury yield had climbed to its highest level since late July on Wednesday, breaking above 4.25%.
Get top local stories in San Diego delivered to you every morning. Sign up for NBC San Diego's News Headlines newsletter.
Gregory Faranello of AmeriVet Securities said in a Thursday note that the recent move higher may seem counterintuitive, but that "as we witnessed toward the end of 2023 these markets get way ahead of themselves and then reprice. It's been like clockwork."
"Unlike the most recent easing cycles, the Fed continues to shrink its balance sheet not grow it. This could very well change in time but it's counter to what we had in 2008/2020, and even 2019," Faranello continued.
Initial jobless claims data released Thursday came out at 227,000 for the week ended Oct. 19, lower than the Dow Jones estimate of 245,000.
Money Report
Traders have also been watching commentary from several Federal Reserve officials this week.
Fed policymaker Beth Hammack said on Thursday that "it has not been a straight line of progress towards returning inflation to our 2% goal," although recent inflation readings have "generally improved" since their peak in June of 2022.
