US treasuries saw a significant downturn in trading on Thursday, with bond prices falling throughout the day. The yield on the benchmark ten-year note rose 5.4 basis points to 4.231 percent. This move came despite a rally on Wall Street, driven by upbeat earnings news from tech giants Microsoft and Meta Platforms.
President Donald Trump’s comments on potential trade deals with India, South Korea, and Japan also reduced the appeal of treasuries as safe-haven assets. Economists had expected jobless claims to increase slightly, but the actual rise was much higher than anticipated, with initial claims reaching 241,000.
The Labor Department report also showed a slight decrease in US manufacturing activity, with the Institute for Supply Management’s PMI reading down to 48.7 in April. This is below the expected dip to 48.0. The view that employment will surge by 130,000 jobs in April and the unemployment rate remaining unchanged at 4.2 percent will likely drive trading on Friday.
Traders largely shrugged off disappointing economic data, with economists focusing instead on the upcoming monthly jobs report for April. This report is closely watched and expected to show a significant increase in employment.
Source: https://www.nasdaq.com/articles/treasuries-move-notably-lower-amid-rally-wall-street