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Treasury yields rise as data soothes global jitters

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Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. sovereign bond yields rose on Thursday to their highest levels in over a week as domestic and overseas data reduced jitters about a year-end slowdown in the global economy, paring safe-haven demand for low-risk government debt.

Yields rallied for a third straight session after U.S. data showed jobless claims rose slightly, but remained near pre-recession lows.

Benchmark 10-year Treasury notes were last down 17/32 in price with the yield at 2.28 percent, up from Wednesday's close of 2.23 percent. Meanwhile, 30-year Treasury bonds fell 1 0/32 in price, lifting the yield to 3.04 percent.

Earlier, European and Asian markets were buoyed by positive purchasing manager's index (PMI) data—which offers a good indicator of growth and business optimism among the U.S.' biggest trading partners.

``There has been an ease of fear. We are in a slow-growing economy. We are plugging along,'' said Ellis Phifer, senior market analyst at Raymond James in Memphis.

In the euro zone, composite PMI data (which includes manufacturing and services) was stronger than expected at 52.2 in October, up from 52.0 in September. In China, meanwhile, HSBC flash manufacturing PMI data rose to a three-month high of 50.4 in October, above the bank's final reading of 50.2 last month.

However, the HSBC report highlighted issues in Beijing's economy with factory output falling to a five-month low. The data comes amid speculation of additional stimulus measures from the Chinese authorities to boost growth.

Investors were also watching for home prices data and leading indicators early in the U.S. session.

On Wednesday, treasury prices fell after data from the Bureau of Labor Statistic showed that the Consumer Price Index for September rose 0.1 percent, in line with estimates. The inflation rate reflected falling gasoline prices following a slump in the cost of oil.

Reuters contributed to this report.