Treasury yields popped on Thursday, and hovered near its highest level since November, as investors assessed fresh economic data and continued to evaluate the fallout from Fitch's U.S. downgrade.
The 10-year Treasury jumped about 11 basis points to 4.185%, trading around levels last seen in November 2022. The yield on the 2-year Treasury dipped nearly 1 basis point higher at 4.881%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors considered what could be next from the Federal Reserve as they weighed recent developments and key economic data offering insight into the state of the labor market and the economy. This included in-line jobless claims numbers and stronger-than-expected productivity data for the second quarter.
Earlier this week, Fitch Ratings announced that it had downgraded the long-term foreign currency issuer default rating for the U.S. from AAA to AA+, citing "fiscal deterioration" and concerns about governance standards and growing general debt.
All this comes after Wednesday's stronger-than-expected ADP report and ahead of Friday's July jobs data.
Also on Thursday, the Bank of England announced a 25 basis point hike as it continues to battle persistently high inflation.