Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025
U.S. Treasury yields ticked higher on Thursday as investors weighed fresh tariffs on foreign automakers and assessed the broader state of the U.S. economy.
The benchmark 10-year Treasury note yield rose more than two basis points to 4.365%. The 2-year Treasury yield was edged lower by one basis point at 3.996%.
One basis point is equivalent to 0.01%. Yields and prices move in opposite directions.
Investors are digesting the latest tariff announcements, with U.S. President Donald Trump on Wednesday announcing new 25% duties on "all cars that are not made in the United States." Trump specified that if the car parts are made in the U.S. and the car itself isn't, it won't be "taxed or tariffed."
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The news adds to broader concerns about how Trump's retaliatory tariffs could affect the U.S. economy, which is showing signs of weakness and slowing growth. Consumer confidence in where the economy is headed, for example, hit a 12-year low, according to the latest figures on Tuesday.
Still, weekly initial jobless claims data released Thursday eased recessionary fears, as initial filings for unemployment insurance changed little last week. Jobless claims came out at 224,000 for the week ending March 22, down 1,000 from the prior week and close to the Dow Jones estimate for 226,000, the Labor Department reported. Continuing claims, which run a week behind, also edged lower.
Investors are turning to the personal consumption expenditures index — the Federal Reserve's preferred inflation gauge — that will be published on Friday.
