US Treasury yield extends gains as bond markets continue to show bearish warning signs

market professionals track the spread Between long-term Treasury yields and short-term yields, with the former typically higher.

Although 2 Year Treasury Yield It rose 15 basis points to 2.967% on Wednesday, up from 10 years. That so-called reversal, especially if sustained, is often interpreted as a warning sign that the economy may be weakening, and a recession may be on the horizon.

2 year to 10 year curve inverted for the first time on 31st MarchThen briefly in June.

Treasury yields were pushed higher on Thursday after moving higher in the previous session on the release of Latest Federal Reserve Meeting Minutes, Documents showed the central bank was leaning towards an increase of another 75 basis points this month as it focused on containing inflation.

Weak economic data has made market participants more concerned about the prospect of a recession, while the Federal Reserve has committed to aggressive monetary policy to combat rising inflation.

On the data front, initial jobless claims for the week ended July 2 will be released at 8:30 a.m. ET, with US trade deficit figures for May being published at the same time.

The Treasury will auction $35 billion in 4-week bills and $30 billion in 8-week bills on Thursday.

— CNBC’s Jesse Pound and Elliot Smith contributed to this report.