Stocks

Treasury prices climb following stock market sell-off

U.S. Treasury prices climbed on Thursday morning, with yields falling, as investors held on to bonds following the heavy selling of stocks in the previous session.

The yield on the benchmark 10-year Treasury note fell 3 basis points to 2.8533% at 4 a.m. ET. The yield on the 30-year Treasury bond moved 2 basis points lower to 3.0426%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Investors sought a safe haven in Treasurys on Wednesday, as the Dow Jones Industrial Average experienced its worst one-day drop since 2020. Earnings updates from big-box retailers showed rising inflation was dragging on corporate profits.

Julian Howard, head of multi-asset solutions at GAM, told CNBC’s “Squawk Box Europe” that he believed hiking interest rates by central banks was not going to fix the “inflation problem anytime soon.”

“And I think we’re starting to see evidence in U.S. earnings in what’s been reported amongst retail stocks, that actually ramping up rates is starting to affect consumer demand,” he explained.

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In terms of economic data releases due out on Thursday, the number of weekly jobless claims filed last week is slated to come out at 8:30 a.m. ET.

The number of existing home sales made in April is then expected to come out at 10 a.m. ET.

Auctions are scheduled to be held on Thursday for $35 billion of 4-week bills, $30 billion of 8-week bills and $14 billion of 9-year 8-month Treasury inflation-protected securities.

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