Bonds

Bond yields rise after ECB delivers large interest rate hike

Bond yields gained on Thursday from the previous session after the European Central Bank hiked interest rates in an effort to tame high inflation.

The yield on the benchmark 10-year Treasury note was up nearly 5 basis points at 3.311% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond was up nearly 6 basis points at 3.464%.

The yield on the 2-year Treasury traded nearly 6 basis points higher at 3.506%. The short-term note rose to 3.55% last week, reaching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%.

Treasurys


Yields ticked up after the European Central Bank early Thursday morning hiked interest rates by 0.75 percentage point, raising its deposit to 0.75% from zero, in a largely expected move to tamp down inflation.

The Federal Reserve released its Beige Book on Wednesday, which showed a still high but cooling inflation outlook and weak U.S. growth. It also saw continued weakening in the residential real estate market.

Despite Wednesday's market gains, stocks are still broadly on a downtrend as investors remain wary of a slowing economy and the Fed's next moves on rate hikes.