Treasury Yields Decline Ahead of Key Economic Data

Treasury yields moved lower across the curve on Thursday, as traders look ahead to key services and jobs data for more insights into the domestic economic picture following a sharp sell-off in global bond markets.

The 10-year Treasury note yield, the main benchmark for mortgages, auto loans and credit card debt, fell more than 2 basis points to 4.7680%. The longer-dated 30-year Treasury yield, which is typically sensitive to geopolitical events, dropped 2 basis points to 5.2433%.

The shorter 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was more than 2 basis points lower at 4.3609%.

One basis point equals 0.01%, or 1/100th of 1%. Yields and prices move inversely to one another.

Thursday's pull-back comes after the benchmark 10-year Treasury note yield touched a multi-year high during Wednesday's session as inflation and debt concerns continue to weigh on markets.

Investors are now gearing up for Friday's nonfarm payrolls data and the unemployment rate for August, which is forecast to show an increase of 58,000 jobs and unemployment holding steady at 4.1%.

Before then, the latest ISM services PMI data — which provides a monthly snapshot of U.S. services activity — is due Thursday, and is expected to come in at 54.3, up slightly from July's print of 54.1.

Elsewhere, hostilities in the Middle East are also looming over markets, after Iran launched missile and drone strikes against Kuwait, and President Donald Trump said the current flare-up in tensions would not last "too long."

West Texas Intermediate futures for October delivery dipped more than 0.5% in early trade, but remain above $90 per barrel, while global oil benchmark Brent crude was last seen 0.6% lower at $95.07.