U.S. Treasury yields rose on Thursday as investors awaited updates on the resumption of U.S.-Iran peace talks and the release of the latest Purchasing Managers’ Business Index for April, due later in the day.
The yield on the 10-year Treasury note, a key measure of U.S. government borrowing, rose more than 1 basis point to 4.308%.
The yield on the two-year Treasury note, which is more closely linked to the Federal Reserve’s short-term interest rate policy, rose slightly to 3.798%. The yield on 30-year government bonds rose 1 basis point to 4.912%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Wednesday, Iran’s navy said it had seized two container ships in the Strait of Hormuz, casting doubt on an already fragile ceasefire.
Iran’s Revolutionary Guards Navy said in a statement that it had seized the vessel for violating maritime law and transferred it to Iranian shores, state media reported. CNBC was unable to independently verify this claim.
The announcement came after British maritime authorities said two ships had been attacked in the Strait of Hormuz. Iranian media reported that a third vessel was also targeted by the country’s military.
The attack came shortly after President Donald Trump announced he would extend a ceasefire with Iran to allow the Islamic Republic’s leaders to submit a “unified proposal” to end the war.
Later Thursday, investors will focus on April’s S&P Global Flash U.S. PMI data, which measures the economic health of the U.S. manufacturing and services sectors.
— CNBC’s Sam Meredith also contributed to this report.
