The 10-year Treasury yield was slightly lower on Thursday as investors closely monitored speeches from a host of Federal Reserve officials and awaited the release of March nonfarm payrolls on Friday.
The benchmark Treasury traded more than 2 basis points lower at 4.329%, after briefly touching 4.429% on Wednesday, a new high for the year. The 2-year Treasury note yield traded marginally lower at 4.672%.
Yields and prices move in opposite directions. One basis point equals 0.01% or 1/100th of a percent.
On Thursday, data showed initial jobless claims increased more than expected last week, hitting their highest level since late January. Additional data released by the Commerce Department showed an increase in the trade deficit to $68.9 billion in February, slightly higher than the Dow Jones estimate.
Fed Chair Jerome Powell on Wednesday said it would take a while for policymakers to evaluate the current state of inflation, leaving the timing of potential interest rate cuts uncertain.
“On inflation, it is too soon to say whether the recent readings represent more than just a bump,” Powell said in remarks at Stanford University.
Several Fed speeches are scheduled for Thursday. Philadelphia Fed President Patrick Harker, Richmond Fed President Tom Barkin and Minneapolis Fed President Neel Kashkari are some of the officials that will remark on the outlook for the U.S. economy.
The central bank in March held interest rates steady for a fifth consecutive meeting, as expected, keeping its benchmark overnight borrowing rate at 5.25%-5.5%. The Fed also signaled that it still expects three quarter-percentage point cuts by the end of 2024. Interest rate futures, while volatile, still imply a rate cut at the June central bank meeting.
— CNBC’s Jeff Cox contributed to this report.
