U.S. Treasurys rose slightly on Thursday as investors considered the latest economic data and weighed the outlook for interest rate cuts.
At 3:35 a.m. ET, the yield on the 10-year Treasury was up by over one basis point to 4.3006%. The 2-year Treasury yield was last more than one basis point higher to 4.7449%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Investors parsed through the latest economic data and looked to the May jobs report slated for later in the week. That will include nonfarm payrolls and the unemployment rate, giving investors insights into the state of the labor market.
That comes after data released Wednesday by ADP showed that private payrolls increased by 152,000 in May, below the 175,000 estimated. Earlier in the week, job openings figures for April came in at 8.059 million, the lowest in three years.
Investors also weighed data that provided fresh clues about the state of the economy. ISM’s purchasing managers index for the services sector, which was released Wednesday, rose to 53.8 in May, above the previously expected 50.7. readings above 50 indicate an expansion of the sector.
On Thursday, import and export data and weekly initial jobless claims figures are due.
Elsewhere, the European Central Bank is set to announce its first interest rate cut since 2019, even as inflationary pressures in the euro zone have lingered. Canada became the first country in the Group of Seven to cut interest rates in the current cycle on Wednesday, following cuts from central banks in Sweden and Switzerland earlier in the year.
The Federal Reserve is due to meet next week, but rate cuts in the U.S. are not expected to begin until later in the year.
