10-Year Yield Ends at 4.96%; Jobless Claims Below Estimates

The 10-year Treasury yield stood at 4.96% on Thursday, Oct. 22, according to FRED data, and the 2-year yield was 4.65%, leaving the 10-year/2-year spread at 31 basis points. CNBC reported that the 10-year yield tumbled below 5% to its lowest level in nearly a month. The effective federal funds rate was 3.88%.

In risk measures, the VIX closed at 19.03, and the high-yield option-adjusted spread was 3.40%. The broad trade-weighted dollar index was last reported at 121.40 as of Oct. 16.

Initial jobless claims for the week ended Oct. 17 were 194,000, below the 200,000 estimate and the prior week's 200,000. Continuing claims rose to 1.728 million from 1.703 million, above the 1.72 million forecast, and the four-week average of initial claims was 197,750. The Leading Index was unchanged in September, versus an expected 0.1% decline.

The Kansas Fed Manufacturing Index fell to 16 from 20, below the 18 estimate, while the composite index was 11, in line with expectations. The 30-year mortgage rate in the weekly survey eased to 7.32% from 7.40%, and the 15-year rate to 6.68% from 6.71%. A 5-year TIPS auction priced at 2.367%, compared with 1.955% at the previous sale.

Overseas, the WSJ reported that the yen strengthened on French debt woes and hit a one-year high against the euro, and that a Japan consumer inflation uptick offers a tailwind for a BOJ rate hike.

Data

Data: FMP, FRED. Figures are close-to-close unless stated.

In the news

• CNBC: 10-year Treasury yield tumbles below 5% to lowest level in nearly a month
• WSJ: Yen Strengthens on French Debt Woes, Hits One-Year High Against Euro
• WSJ: Japan Consumer Inflation Uptick Offers Tailwind for BOJ Rate Hike