The 2-year Treasury yield rose more than a basis point Thursday after Minneapolis Fed President Neel Kashkari said policymakers should start raising rates. Longer-dated yields held steady while traders also weighed Friday's jobs report and an Iran-Oman shipping deal that moved oil prices.
The 2-year Treasury note yield climbed to 4.1977%, more than a basis point higher, Thursday, as traders focused on the short end of the curve. The 10-year yield, meanwhile, held unchanged at 4.6208%, and the 30-year yield was also flat at 5.1711%.
That climb came as Minneapolis Federal Reserve President Neel Kashkari told CNBC Wednesday: "now is the time" for policymakers to start raising rates. He pointed to strong corporate earnings alongside solid consumer and labor market sentiment as the case for a rate hike.
This short-term reaction fits the 2-year note's pattern of tracking Federal Reserve decisions more closely than longer maturities, unlike the steadier 10-year and 30-year. Other points on the curve also ticked up: the 1-year yield rose to 4.032%, and the 3-month and 6-month yields edged higher as well.
Investors are also gearing up for Friday's nonfarm payrolls report. July's data is forecast to show an increase of 83,000 jobs, with the unemployment rate expected to hold at 4.2%.
At the same time, the Middle East is weighing on markets. Iran said it had reached an understanding with Oman on shipping flows through the Strait of Hormuz, which left oil prices oscillating above and below the flatline. West Texas Intermediate futures for September delivery were down 0.25% at $75.05. Brent crude, meanwhile, was up almost 0.1% at $79.49.
Source: International: Top News And Analysis
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