U.S. Treasury yields rose on Thursday as investors became wary again after the latest developments in the U.S.-Iran war and newly released economic data.
The yield on the benchmark 10-year U.S. Treasury rose more than 5 basis points to 4.134%, trading at its highest level since Feb. 12. The 30-year Treasury note added 3 basis points to a yield of 4.747%. The yield on two-year government bonds rose 4 basis points to 3.583%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
U.S. crude oil resumed its rally on Thursday, hitting $80 a barrel after Iran announced it had attacked a tanker. West Texas Intermediate Crude Oil Futures It settled more than 8% at $81.01 per barrel. moreover, brent crude oil futures It rose about 5% to settle at $85.41 per barrel. The rise in oil prices eased on Wednesday.
Iran’s foreign minister said Thursday that the country is not pursuing a ceasefire between the United States and Israel, telling NBC News in an interview that “I see no reason to negotiate.”
U.S. Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” on Wednesday that the government would roll out a series of measures to support Gulf oil trade as the war threatens to jeopardize supplies and push prices higher. Bessent also told CNBC that President Trump’s recently announced 15% global tariff is likely to go into effect this week after the Supreme Court struck down the president’s levy in February.
Investors are focused on potential disruptions to the flow of oil through the Strait of Hormuz, a narrow strait that handles about a fifth of the world’s crude oil shipments.
President Donald Trump announced Tuesday that the United States will provide risk insurance for tankers in the Persian Gulf and provide escorts to secure traffic in the strait.
“Given the situation in the Middle East, U.S. Treasury yields are caught in a tug-of-war between oil-driven inflation concerns and the market’s traditional safe havens,” said Ross Panfilon, chief investment officer at Impax. “While the situation remains fluid, our strategy in this situation has been to moderately de-risk and use the selloff as a buying opportunity.”
Investors also digested the latest economic data released on Thursday. Jobless claims for the week ending February 28 were 213,000, lower than the Dow Jones Industrial Average’s forecast of 215,000. Additionally, productivity and unit labor costs rose more than expected in the fourth quarter, putting upward pressure on yields.
Wall Streeters are keeping an eye on Friday’s release of February nonfarm payrolls.
