NEW YORK (MarketWatch) — Treasury prices rose for their fourth consecutive session on Thursday, sending benchmark yields to a fresh 16-month low as investors continued to parse the dovish tilt in a recent Federal Reserve release.
The 10-year Treasury note 10_YEAR, -0.09% yield, which falls as prices rise, was down 1.5 basis points to 2.316%, on track to close at its lowest since June 2013. The yield touched as low as 2.28% in morning trade.
The central bank’s minutes from its September meeting showed concern among monetary policy makers about the degree to which slowing global growth could be a headwind for the U.S.
“The Fed has spoken and the market listened,” said Adrian Miller, director of fixed-income strategy GMP Securities, LLC, in a note.
Investors pulled back on their expectations for the timing of the first rate hike, which was reflected in falling short-term yields that are generally the most sensitive to shifting policy expectations. The 2-year Treasury note 2_YEAR, -0.86% yield has fallen over 10 basis points since Friday, and last traded at 0.452%.
Here’s what else is in focus on Thursday:
The amount of people applying for unemployment benefits was down slightly at 287,000, holding below 300,000 for the fourth consecutive week.
The Treasury Department is set to auction $13 billion in 30-year bond 30_YEAR, -0.13% , its final auction of the week.
The Bank of England held its key interest rate unchanged at 0.5%.
Strategists also said some of Thursday’s move was attributed to traders who were closing out short positions by buying back into the market.
Bond investor Bill Gross will hold his first investor webcast since leaving Pimco to join Janus Capital.
