Traders work on the floor of the New York Stock Exchange on International Women’s Day, March 9, 2026.
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U.S. Treasury yields turned higher on Thursday as investors focused on the latest developments in the Middle East and their potential impact on the outlook for inflation and interest rates.
of 10 years US Treasury The yield on notes, a key benchmark for mortgages, auto loans and credit card debt, rose more than 3 basis points to 4.386%.
of 2 year Treasury bill The yield, which is closely tied to the Fed’s short-term interest rate decisions, rose more than 3 basis points to 3.909%. longer date 30 year government bond The yield rose more than 2 basis points to 4.966%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The rise in borrowing costs comes as investors await answers on a possible settlement between the US and Iran.
US crude oil prices regained their losses on Thursday, west texas intermediate Futures fell just 0.28% to $94.81 per barrel.
The move came after a senior Iranian official told Iranian state-run Press TV on Thursday that Iran would not allow the US to reopen the Strait of Hormuz with its “unrealistic plan” and that the US must pay compensation for the damage it caused before withdrawing from the conflict.
President Donald Trump said Wednesday that Iran would be bombed “at a higher level” if it did not agree to a peace deal.
Traders are continuing to assess how the duration of the conflict will affect inflation expectations, growth forecasts and the outlook for the Fed’s interest rate decisions.
The Labor Department released weekly new jobless claims numbers on Thursday, ahead of April nonfarm payrolls and unemployment statistics to be released later this week. The number of unemployment insurance claims for the week ending May 2 was 200,000, an increase of 10,000 from the previous week. However, the number was still lower than the 206,000 expected by economists compiled by Dow Jones.
“The labor market is strong because the number of Americans on the unemployment rolls receiving benefits has fallen significantly since the war began in late February,” said Chris Rupkey, chief economist at FWDBONDS. “Not only has the so-called fog of war with its uncertainties not led to layoffs, but the economic picture provided by these most timely leading economic indicators shows that everything is surprisingly good.”
