Treasury yields rose on Thursday after surging to highs not seen in more than a decade in the previous session.
The benchmark 10-year Treasury yield climbed 6 basis points 4.19% in midday trading, hitting its highest level since 2008. The yield on the policy-sensitive 2-year Treasury traded up three basis points to 4.584%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Many investors been concerned about the economy contracting as the Federal Reserve has been hiking interest rates to fight persistent inflation. Another 75 basis point hike is expected from the central bank at its next meeting on Nov. 1 and 2.
On Thursday, Philadelphia Fed President Patrick Harker said that the Fed would continue raising rates.
“Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year,” Harker said.
The 10-year yield moved to new highs after Harker’s remarks.
On the economic front, initial jobless claims came in at 214,000, below the 230,000 expected by economists according to Dow Jones. However, the Philadelphia Fed manufacturing index showed a larger than expected decline.
U.S. housing starts and building permits data for September came in below expectations on Wednesday, which investors widely understood as a sign of recession in the housing sector.
In Europe, U.K. Prime Minister announced her resignation. The British pound rose against the dollar on the news.
