Bond Market Commentary

Over in bond land, Treasury yields are unchanged before the opening bell Thursday as investors are awaiting fresh unemployment claims data. As of 6:57 AM ET, the yield on the 10-year note is unchanged at 4.05%, while the 30-year bond yield is also unchanged at 4.70%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 3.47%. 

Treasury yields were higher on Wednesday as markets digested Federal Reserve (Fed) commentary and awaited a major technology company’s earnings report. The yield on the 10-year note was up two basis points (0.02%) to 4.05%, while the 30-year bond yield also rose two basis points (0.02%) to 4.70%. The yield on the two-year note increased one basis point (0.01%) to 3.47%.

On the data front, initial jobless claims for the week ending February 21 are expected to come in at 216,000, slightly higher than the prior week’s 206,000. Continuing claims are expected to fall slightly to 1.858 million for the week ending February 14 from the prior week’s 1.869 million. The Kansas City Fed will release their manufacturing survey for February, with the Composite Index expected to come in at 1.5, up from the prior month’s 0.

In the auction space, the U.S. Treasury is set to issue $105 billion in four-week bills, $95 billion in eight-week bills, and $44 billion in seven-year notes.

In the central bank space, Fed Vice Chair for Supervision Michelle Bowman, Fed Governor Stephen Miran, and Chicago Fed President Austan Goolsbee are scheduled to speak today.

The Bloomberg 30-day visible supply rose $1.202 billion to $16.044 billion on Wednesday, above the 12-month average of $13.910 billion.

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