U.S. Treasury yields inched higher on Thursday as investors monitored geopolitical uncertainty, with talks over Greenland and the possibility of a U.S. strike on Iran.
At 4:39 a.m. ET, the benchmark 10-year Treasury yield was less than 1 basis points higher at 4.143%. The yield on the 2-year Treasury was also barely higher at 3.52%. Meanwhile, the 30-year Treasury yield fell less than 1 basis points, trading at 4.793%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Geopolitical risks have dominated headlines this week and investors are watching as Trump insists on taking ownership of Greenland — an autonomous region within the Kingdom of Denmark — claiming it’s central to U.S. national security.
A White House meeting between officials from Greenland, Denmark, and the U.S. took place on Wednesday but a Danish official said it ended with “fundamental disagreement” over ownership of the Island.
Meanwhile, tensions between the U.S. and Iran have also been weighing on investors amid speculation that the U.S. could launch a military strike in response to Iran’s crackdown on widespread protests.
However, Trump signaled Wednesday that he might hold off on attacking, saying: “We’ve been told that the killing in Iran is stopping… and there’s no plan for executions.”
An ongoing criminal investigation into Federal Reserve Chairman Jerome Powell is also raising concerns about the Fed’s independence amid White House intimidation and whether it can remain unburdened by political influence on monetary policy.
Global central bankers have defended Powell, saying that the independence of central banks “is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.”
On the economic data front, investors will await the weekly initial jobless claims, due to be released at 8:30 a.m. ET.
