The US 30-year yield rose to the highest level since Nov. 16, Thursday, joining the rest of the Treasury market in offering investors a return of at least 4% after another batch of strong labor-market data.
Yields across the Treasury market were higher by at least 5 basis points following an upward revision to the fourth-quarter unit-labor-costs growth rate. The 30-year yield rose as much as 8 basis points to 4.03%, up from a 2023 low of 3.5% in early February.
While shorter-maturity yields have been spurred higher as traders have adopted higher forecasts for the peak Federal Reserve policy rate, signs of sticky inflation are weighing on longer-dated Treasuries. A jump in a gauge of US manufacturer prices Wednesday stoked fears that a companion report on the services sector will remain buoyant and spark further selling.
“Another firm ISM services number on Friday will see higher yields across the curve,” said Jack McIntyre, portfolio manager at Brandywine Global Investment Management. “As a long-duration investor, we are in a tough environment, but we see the backup in yields as an opportunity.”
The Treasury market has erased its January gains, which followed its worst year on record, with renewed bearish sentiment also spurred by robust Chinese economic data and inflation pressure in Europe.
