Treasury yields rose on Thursday, as investors digested mixed U.S. economic data and positive news coming out of the eurozone, where the European Central Bank boosted emergency liquidity for Greek banks and the Eurogroup agreed to Greece’s request for a three-year bailout.
The selloff started in the overnight after Greece’s parliament approved tough austerity measures in exchange for bailout funding late Wednesday.
On Thursday morning, a jobless claims report that showed that the number of people who applied for U.S. unemployment benefits fell sharply along with a strong gauge of confidence among home builders also added to the selling momentum.
The yield on the 10-year note TMUBMUSD10Y, +0.23% increased 4.6 basis points to 2.392%. The yield on the two-year note TMUBMUSD02Y, +5.81% rose 4.8 basis points to 0.673%. The yield on the 30-year bond TMUBMUSD30Y, -0.54% gained 2.6 basis points to 3.159%. Bond yields rise as prices fall.
“Overall, the price action in the Treasury market has been driven by concerns or optimism on what is happening overseas — namely Greece and China… Investors’ attention has strayed from U.S. fundamentals,” said Mary Talbutt, head of fixed income at Bryn Mawr Trust.