08/17/2023
U.S. bond yields climb, U.S. stocks fall for third straight day
U.S. stocks ended lower on Thursday, with major indexes posting their third straight session of declines. Long-term U.S. bond yields climbed. Financial reports and economic data became the focus of the market. Investors continued to focus on the Federal Reserve's monetary policy stance.
U.S. Treasury yields climbed Thursday. U.S. 10-year Treasury yields climbed to their highest level since October 2022, while 30-year yields rose to their highest level since 2011, extending a recent upward trend.
U.S. 30-year mortgage rates rose to 7.09%, the highest level since 2002, driven by gains in long-dated Treasury yields.
U.S. Treasury yields rose on concerns that U.S. interest rates could remain elevated for longer.
Investors are still closely watching the Fed's future monetary policy stance. The Federal Reserve said in the minutes of its July monetary policy meeting released on Wednesday that it may need to further tighten monetary policy to reduce inflation, suggesting that there is still the possibility of raising interest rates in the future. The current range for the federal funds rate is 5.25% to 5.5%.
