U.S. government debt yields held lower Thursday after the European Central Bank said it would delay its plan to hike interest rates and launch a program to stimulate banking lending in the euro zone.
Yields initially ticked upward following the central bank's decision to keep borrowing costs low, but quickly reversed course and turned lower within minutes. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, was last seen at 2.679 percent. The yield on the 30-year Treasury bond was also lower at 3.061 percent.
The ECB said its new targeted refinancing operations (TLTRO-III) stimulus program will start in September and run through March 2021. The loans offer European banks lower rates, making it easier for them to lend money to consumers with the idea of buoying the economy. This is the third stimulus injection from the ECB since 2014.
The bank also kept interest rates unchanged Thursday and updated its guidance. Interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0, 0.25 and -0.40 percent respectively.