US Treasury yields rose on Thursday as traders weighed the odds of a Federal Reserve interest rate hike and oil prices jumped on rising Middle East tensions. Minneapolis Fed President Neel Kashkari said the time has come for policymakers to start raising rates, and investors now turn to Friday's jobs report for the next signal on where yields head.
The 10-year Treasury note yield climbed more than 4 basis points to 4.664% on Thursday, as traders sharpened their focus on the chances of a Fed rate hike. The 30-year yield gained more than 3 basis points to 5.208%. The shorter-dated 2-year yield, which tends to react to short-term Federal Reserve interest-rate expectations, rose over 6 basis points to 4.243% — a move measured in basis points, each equal to a hundredth of a percentage point.
Minneapolis Federal Reserve President Neel Kashkari told CNBC that policymakers' time to start raising rates has arrived, pointing to strong corporate earnings alongside solid consumer and labor market sentiment. Traders are also watching the Middle East, where oil prices rose after Iranian state news agency Fars published a draft plan that would ban U.S. and Israeli ships from passing through the Strait of Hormuz.
West Texas Intermediate futures for September delivery climbed almost 3% to settle at $77.29 a barrel. Global benchmark Brent crude rose nearly 4% to close at $82.49.
Investors are now gearing up for Friday's July nonfarm payrolls report, which is forecast to show an increase of 83,000 jobs with unemployment unchanged at 4.2%. Clark Bellin, president and chief investment officer at Bellwether Wealth, said the release could move yields in either direction: "Friday's jobs report may put upside or downside pressure on bond yields".
Bellin added that yields are already sitting at the upper end of their recent trading range.
Source: International: Top News And Analysis
Trading involves risk.
Risk Disclaimer
