The U.S. Treasury Department's 10-year yield fell to 4%, then retreated as investors assessed the latest inflation data and the growth of unemployment claims.
Benchmark output 10 years of the Ministry of Finance After a drop to 4% earlier in the meeting, it finally dropped by 1.022% basis point. this 30 years of finance The yield has barely changed to 4.671%, because 2 years The yield fell by 2 basis points to 3.513%.
One basis point equals 0.01%, and the bond yield and price move in the opposite direction.
Investors conducted a confusing series of economic data on Thursday morning, and when policymakers call meetings next week, higher consumer prices and higher unemployed claims would complicate the Fed's interest rate outlook.
August's consumer price index increased by 0.4% this month with a seasonal adjustment, twice the previous month, with an annual inflation of 2.9%. Economists who conducted the survey by Dow Jones have been looking for readings of 0.3% and 2.9% respectively.
Weekly claims for unemployed people also jumped to a seasonally adjusted 263,000, up from 235,000 estimates, up 27,000 from the previous period, according to the Labor Department.
“Overall, this set of data strengthens the limited inflation consequences of the trade war (to date) and is increasingly concerned that the labor market is weakening rapidly,” Ian Lyngen, head of U.S. interest rate strategy in the BMO Capital Markets Fixed Income Strategy team, wrote on Thursday. “This clears the cut of 25 barrels next week, leaving 50 barrels on the table despite we staying at the 25 bp camp.”
August's CPI and unemployed claims data came after a weaker producer price index on Wednesday, and also strengthened expectations for a tax reduction in September. CME Group's FEDWATCH tool on Thursday cut the probability of about a quarter of a point and had a 6% chance of making a half-point move.
– Jeff Cox and Yun Li of CNBC contributed to this report.