The U.S. Department of the Treasury's 10-year yield fell below 5% Oct. 22 as a technology-led selloff sent investors toward government bonds, according to the Associated Press (AP), while initial claims eased to 194,000.
The Treasury's daily par curve put the 10-year rate at 4.96%, down 17 basis points from 5.13% on Oct. 21. The two-year yield was 4.65%, a 16-basis-point decline, and the 30-year rate fell 13 basis points to 5.29%. Treasury calculates these par rates from indicative bid-side prices gathered near 3:30 p.m. ET. Each is a point on the curve, not a quote for a specific outstanding bond. All three rates declined, although the 30-year remained above 5%.
The U.S. Department of Labor (DOL) said seasonally adjusted initial claims totaled 194,000 for the week ended Oct. 17, down 6,000 from the prior week. The release came at 8:30 a.m. ET, seven hours before the Treasury's 3:30 p.m. ET market snapshot. DOL revised the preceding week's count to 200,000 from 199,000, and the four-week average fell by 1,000 to 197,750. Reuters reported that economists it polled had expected 200,000 claims, matching the revised count for the prior week.
AP reported that investors bought government debt as a safer holding during the technology-led selloff. The S&P 500 fell 1.2%, while the Nasdaq composite lost 2.6% Thursday, the news agency reported.
Brent crude rose 4% to $113.17 a barrel after touching a five-month high, AP reported, amid worries about the Iran war.
On Oct. 21, both the 10-year and 30-year yields were above 5%, as EconoTimes noted in its earlier report ahead of the claims release.
The Federal Open Market Committee (FOMC) is scheduled to meet Oct. 27-28.
