Bonds

Treasury yields are mostly flat as investors digest economic data

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U.S. Treasury yields were mostly flat Thursday as investors digested the latest economic data.

The yield on the benchmark 10-year Treasury note was little changed at 1.264% by 4:13 p.m. ET. The yield on the 30-year Treasury bond was mostly flat at 1.914%. Yields move inversely to prices. One basis point equals 0.01%.

Treasurys

U.S. gross domestic product for the second quarter rose 6.5% from the year prior, slightly stronger than the 6.3% annualized gain in the first quarter, but well below economists' 8.4% expectation.

Jobless claims for the week ending July 24 showed 400,000 people filed initial claims for unemployment benefits, nearly double the pre-pandemic norm.

The Fed on Wednesday held its benchmark interest rate near zero, following a two-day policy meeting.

The Fed's statement said "progress" had been made on its employment and inflation targets. However, Fed Chairman Jerome Powell cautioned that "substantial further progress" had not yet been reached on these goals.

PNC chief economist Gus Faucher said the comments indicated that the Fed had started the "tapering clock" on paring back its asset purchases.

Tiffany Wilding, U.S. economist at PIMCO, said on Thursday that the Fed's statement suggests that it could announce the first reduction in bond purchases as early as September.

However, Wilding said it "reaffirmed our view that December is the most likely timing for any announcement."