U.S. Treasury yields stabilized on Thursday after sharp declines notched Wednesday on the back of a slate of disappointing U.S. data.
The 2-year yield rose less than 1 basis point to 3.885% at 3:26 a.m. EST, with the 10-year Treasury yield also up by less than 1 basis point at 4.371%. The 30-year long bond yield held steady at 4.89%.
Investors will be keeping an eye out on April trade data and on the latest initial jobless claims print coming out later on Thursday, after a set of weak indicators sent Treasury yields on a steep tumble during the previous session. The 10-year bond yield eased by more than 10 basis points on Wednesday.
The services sector activity weakened unexpectedly in May to 49.9%, slipping just below the threshold that separates expansion from contraction and missing the Dow Jones forecast of 52.1%
Similarly, private sector payrolls increased by only 37,000 in May, falling significantly short of a Dow Jones estimate of 110,000. The disappointing figure heightened investor concerns about a weakening labor market and its potential economic fallout.
Despite the forecast misses, the latest numbers are not “so bad” as to revive fears about a recession in the world’s largest economy, Deutsche Bank wrote in a research note published Thursday.
Later this week, traders will also be keeping an eye on May’s non farm payrolls and unemployment rate, due out on Friday.
