A trader works during the closing bell at the New York Stock Exchange (NYSE) on March 17, 2020 at Wall Street in New York City.
The yield on the 10-year Treasury dipped on Thursday, easing from the near three-month highs reached in the previous session, as traders continue to digest the trajectory of interest rate cuts.
The 10-year Treasury yield slid about 2 basis points to 4.22%, while the 2-year Treasury fell almost 3 basis points to 4.059%.
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Yields move inversely to prices. One basis point equals 0.01%.
The benchmark 10-year Treasury yield had climbed to its highest level since late July on Wednesday, breaking above 4.25%.
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Gregory Faranello of AmeriVet Securities said in a Thursday note that the recent move higher may seem counterintuitive, but that "as we witnessed toward the end of 2023 these markets get way ahead of themselves and then reprice. It's been like clockwork."
"Unlike the most recent easing cycles, the Fed continues to shrink its balance sheet not grow it. This could very well change in time but it's counter to what we had in 2008/2020, and even 2019," Faranello continued.
Initial jobless claims data released Thursday came out at 227,000 for the week ending on Oct. 19, lower than the Dow Jones estimate of 245,000.
Money Report
Comments from Federal Reserve policymaker Beth Hammack will also be closely watched for an indication on the future path of interest rates as traders have become concerned that the central bank may opt for a slower pace of cuts.
