U.S. Treasury yields fell Thursday, with the 10-year dropping below 4%, after initially moving lower in the wake of a weaker-than-expected survey of economic conditions in the Philadelphia region.
At around 3:00 p.m. ET, the yield on the benchmark 10-year Treasury
was down more than 6 basis points to 3.978%, while that of the 2-year Treasury note decreased by 8 basis points to 3.428%. The 30-year bond yield fell more than 5 basis points to 4.585%.
The 10-year briefly hit 3.973%, its lowest level since April 7, while the 2-year touched 3.412%, its lowest level since Sept. 8, 2022. One basis point is equal to 0.01% and yields and prices move in opposite directions.
The move in Treasurys came as stocks took a tumble, led by declines in bank shares. Traders are growing worried about bad loans, as two recent bankruptcies have suggested that lending standards may have relaxed too much. This, combined with trade tensions and the ongoing U.S. government shutdown, may have some wanting to reduce risk.
