BOND REPORT: Treasury Yields Rise After Data Rebound

By Sunny Oh Features Dow Jones Newswires

Treasury prices fell, lifting yields, on Thursday after a solid raft of economic data boosted fourth-quarter GDP forecasts, dragging the bond market out of its doldrums.

Continue Reading Below

Trading has been largely choppy in the last few sessions as investors are tugged between geopolitical concerns and speculation over the new boss of the Federal Reserve and as traders await the nonfarm-payrolls report on Friday.

What did Treasury yields do?

The 10-year Treasury yield rose 2 basis points to 2.350% from 2.332% on late Wednesday, according to WSJ Market Data Group. The 2-year Treasury note yield rose a basis point to 1.487%, versus 1.479%. The 30-year Treasury bond yield added 3 basis points to 2.893%, from 2.878%. Bond prices move inversely to yields.

What is driving markets?

Read:Pocket guide to Trump's candidates for top Fed spot (http://www.marketwatch.com/story/pocket-guide-to-trumps-candidates-for-top-fed-spot-2017-10-05)

Continue Reading Below

Trading action was mostly subdued as investors readied for labor-market data that could help guide the Federal Reserve's policy plans and influence trading in government paper. Market participants also grappled with concerns that a Catalan independence vote (http://www.marketwatch.com/story/european-stocks-trade-mixed-as-investors-absorb-catalonia-developments-2017-10-05) could stir further trouble for Spain and the viability of the European Union, as analysts say it could encourage other regional separatist movements to seek a divorce from other eurozone member nations.

What are Fed speakers saying?

See: Jerome Powell, in the running for top Fed spot, echoes one of Trump's economic themes (http://www.marketwatch.com/story/jerome-powell-in-the-running-for-top-fed-spot-echoes-one-of-trumps-favorite-economic-themes-2017-10-03)

What economic data are on investor's radar?

What other assets are on the move?

European bonds have rallied after an auction for Spanish government paper saw strong appetite, easing concerns that Catalan tensions would hammer its bond market. The French 10-year fell a basis point to 0.735%, while the Spanish 10-year fell 9 basis points to 1.699%. The German 10-year Treasury yield was at 0.454%, compared with 0.452% on Wednesday.

On Wednesday, Ireland issued its first negative-yielding government bond, meaning investors will have to pay to own the sovereign paper. Ireland's 5-year note yielded negative 0.144%.

(END) Dow Jones Newswires

October 05, 2017 14:05 ET (18:05 GMT)