U.S. Treasury Yields Fluctuate as Investors Assess Economic Data and Geopolitical Risks

Markets react to weak bond auction demand, Federal Reserve signals, and escalating tensions in the Russia-Ukraine conflict.

The 10-year Treasury yield fell slightly to 4.402% on Thursday, while the 2-year yield dipped to 4.306%, following earlier increases this week.
Investors are closely monitoring Federal Reserve speeches and economic data, including jobless claims, housing market updates, and manufacturing indices, for insights on future monetary policy.
Weak demand in a $16 billion 20-year bond auction on Wednesday raised concerns, with the bid-to-cover ratio hitting its lowest level since August 2022.
Geopolitical tensions intensified after Russia revised its nuclear doctrine and Ukraine deployed U.S.-made long-range missiles, prompting the U.S. to close its embassy in Kyiv due to potential airstrike threats.
Market participants are also evaluating President-elect Donald Trump's potential Treasury Secretary picks and their implications for economic policy.