10-year U.S. Treasury yield hovers around 1% before economic data

These are the last days of small government and the Biden administration will make sure of that

U.S. Treasury yields were slightly lower on early Thursday ahead of a rush of data that will provide more insight on the health of the economy at the end of last year.

What are Treasurys doing?

The 10-year Treasury note yield

was down 0.5 basis point to 1.009%, while the 2-year note rate

was flat at 0.119%. The 30-year bond yield

slipped 1.8 basis points to 1.762%.

What’s driving Treasurys?

U.S. economic data will draw most of the attention on Thursday, as traders look to see how much the recovery’s pace slowed at the end of 2020 when several states instituted lockdown measures in a bid to stem a resurgent COVID-19 pandemic.

Initial jobless benefit claims for the week of Jan. 23, advanced international trade goods data and fourth-quarter gross domestic product numbers were due at 8:30 a.m. ET. Then, December new home sales and the Conference Board’s leading economic indicator index for last month will both be released at 10 a.m.

Investors will also eye the recent volatility in Wall Street. Stock futures were headed lower at the start of Thursday, after equities booked their worst daily losses since October.

An auction for $62 billion of 7-year notes will also arrive in the afternoon, testing the appetite of bond buyers.

What did market participants say?

“What is impactful right now is volatility and the mood of risk assets. To resume our projected uptrend in market rates, we would need to see volatility calm, and risk assets to feel far less jumpy than they currently do,” said Padhraic Garvey, regional head of research for the U.S. at ING.

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