Tepid economic data and high demand from investors have pulled yields lower in recent sessions
The yield on the benchmark 10-year Treasury note closed below 1.5%, its lowest level in more than three months, dragged down by tepid economic data and high demand from investors both in the U.S. and elsewhere.
The yield on the 10-year Treasury note, which helps set borrowing costs on everything from corporate debt to mortgages, closed at 1.489%, according to Tradeweb, its lowest settle since March 3. That was down from 1.527% Tuesday.
The dollar index was down slightly on Thursday after alternating between losses and gains earlier in the session as investors digested elevated U.S. inflation and European Central Bank commentary while eyeing the U.S. Federal Reserve’s next meeting.
After adopting a wait-and-see attitude all week, sucking volatility from the market and leaving major currencies mostly range-bound, Thursday’s developments appeared to add little new direction to currency markets.
Earlier in the day, the ECB raised its growth and inflation views but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off recovery.
Then in the United States, data showed that the number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months, while consumer prices increased further in May as the pandemic’s easing grip on the economy continued to boost domestic demand.
The dollar index, which measures the greenback against a basket of major currencies, has fluctuated narrowly around the psychologically important 90 level, and was last down 0.08% at 90.0670. The euro was last down 0.05% at $1.2172.
In crypto markets, bitcoin edged higher, last up 0.4% at $36,563. The best-known crypto currency has struggled since reaching a record $64,895.22 in mid-April.
Reference: CNBC, Wall Street Journal
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