U.S. Treasury yields advanced on Thursday after the latest economic data signaled strength in the economy.
The 10-year Treasury yield added 8 basis points to 4.096%. The 2-year Treasury yield climbed 4 basis points to 3.978%. One basis point equals 0.01%. Yields and prices move in opposite directions.
Yields took a leg up after consumer spending figures came in hotter than forecast. Retail sales showed a rise of 0.4% in September, above the estimate of 0.3% from economists polled by Dow Jones. Excluding autos, sales increased 0.5%, also higher than the consensus expectation of 0.1%.
Weekly jobless claims, meanwhile, fell to 241,000, according to separate data released Thursday. Taken together, both data points paint a picture of a resilient economy.
“Real wage growth and underlying demand for goods and services are overshadowing negative sentiment,” said David Russell, global head of market strategy at TradeStation. “The economy continues to accelerate thanks to the U.S. consumer, and may improve further as lower fuel prices kick in. Today’s numbers make a recession look even less likely.”
The data comes after several Fed officials earlier this week hinted at further rate cuts to come. Additional comments from policymakers are expected as the week continues.
Elsewhere, the European Central Bank implemented its third interest rate cut of the year at its meeting Thursday. The decision comes as policymakers have pointed toward a weaker growth outlook and easing inflation risks.
— CNBC’s Jeff Cox and Sophie Kiderlin contributed to this report.
