Treasury yields moved lower on Thursday as investors monitored developments in the Middle East and awaited more domestic economic data due later in the session.
Yields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — were more than 7 basis points lower at 5.0732%.
The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was more than 5 basis points lower at 4.7654%. The yield on longer-dated 30-year U.S. Treasurys — which often moves on geopolitical developments — fell 6 basis points to 5.3751%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
The slide in borrowing costs comes as investors look ahead to initial jobless claims data, due later from the Labor Department, amid a broader risk-off sentiment in stock markets and rising Middle East tensions.
Economists polled by Dow Jones are expecting the number of people claiming unemployment benefits to come in at 200,000 in the week ended Oct. 17.
Oil prices moved sharply higher on Thursday, with West Texas Intermediate futures edging closer to $100 a barrel in early trade, rising 2.81% at $99.96. Brent crude, the global price benchmark, increased 3.33% to $112.44.
The moves followed a New York Times report, citing unnamed U.S. officials, that the U.S. and Israel are considering resuming strikes on Iran in a “short but intensive” operation following next month’s midterms elections.