On Thursday, US Treasury yields across all maturities moved broadly lower. Investors are digesting the results of the US midterm elections while waiting for employment data due later in the day.
The benchmark 10-year Treasury yield fell about 3 basis points to 4.865%; the 2-year Treasury yield was flat at 4.581%; the 30-year Treasury yield dropped 3 basis points to 5.245%. One basis point equals 0.01%; bond yields and prices move in opposite directions.
Investors are still assessing the outcome of the US midterm elections, in which Democrats won control of Congress. This so-called "blue wave" has prompted the market to examine the policy direction for the remainder of President Donald Trump's term.
Markets expect a lower likelihood of further escalation in the Iran war, and oil prices moved lower as a result. After the election results emerged, Treasury yields fell sharply; by Wednesday's close, the 10-year Treasury yield had dropped 6 basis points for the day.
Affected by tight energy supplies in the Middle East, oil prices have risen sharply this year, and market concerns about a resurgence of inflation and a shift toward hawkish tightening by central banks have weighed on government bonds globally.
Traders are also awaiting the weekly initial jobless claims data due at 8:30 a.m. Eastern Time. The October nonfarm payrolls report will be released on Friday.
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