Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024.
U.S. Treasury yields were little changed Thursday as investors considered the latest economic data and weighed the outlook for interest rate cuts.
The yield on the 10-year Treasury ticked up about 1 basis point to 4.288%. The 2-year Treasury yield added less than 1 basis point on the day to 4.73%.
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Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.
The European Central Bank announced its first interest rate cut since 2019 on Thursday, even as inflationary pressures in the eurozone have lingered. The move will likely increase the pressure on the U.S. Federal Reserve to follow suit and walk back monetary policy that investors view as too restrictive. The Fed is due to meet next week, but rate cuts in the U.S. are not expected to begin until later in the year.
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Canada became the first country in the Group of Seven to reduce interest rates in the current cycle on Wednesday, following cuts from central banks in Sweden and Switzerland earlier in the year.
Investors parsed through the latest economic data and looked to the May jobs report slated for later in the week. That will include nonfarm payrolls and the unemployment rate, giving investors insights into the state of the labor market.
That comes after data released Wednesday by ADP showed that private payrolls increased by 152,000 in May, below the 175,000 estimated. Earlier in the week, job openings figures for April came in at 8.059 million, the lowest in three years.
Money Report
Investors also weighed data that provided fresh clues about the state of the economy. ISM's purchasing managers' index for the services sector, which was released Wednesday, rose to 53.8 in May, above the previously expected 50.7. Readings above 50 indicate an expansion of the sector.
