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10-year US yield soars to highest level July 2015

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U.S. government debt prices fell sharply Thursday as investors eyed a slew of economic data, while oil prices kept climbing.

The yield on the benchmark 10-year Treasury note (U.S.:US10Y) rose to trade at 2.4445 percent, while the yield on the 30-year Treasury bond (U.S.:US30Y) was also higher at 3.0986 percent. Yields move inversely to prices.

Earlier, the European Central Bank will extend its bond purchases beyond March and may send a signal on the eventual end of asset buying, Reuters reported citing senior sources with direct knowledge of discussions.

U.S. Treasury yields took another leg higher, following the 10-year German bund yield (Germany:DE10Y-DE) which last traded near 0.368 percent.

WERBUNG

The yield on the 5-year Treasury note (U.S.:US5Y) hit a high of 1.935 percent, its highest level since May 2011. The benchmark 10-year note yield hit a high of 2.492 percent, while the 30-year bond yield hit a high of 3.156 percent, their highest levels since June and July 2015, respectively.

On Wednesday, OPEC agreed to its first oil production cut in eight years, triggering a rally in oil prices. In commodity markets on Thursday, U.S. crude (New York Mercantile Exchange: @CL.1) settled up 3.3 percent at $51.06 a barrel.

On the data front Thursday, initial jobless claims came in at 268,000, above an expected 253,000. Meanwhile, the IHS Markit U.S. Manufacturing index reading for November came in at 54.1. "This was mainly driven by domestic sales, as new orders from abroad increased only marginally since the previous month, with survey respondents citing competitive pressures and the strong dollar," IHS Markit said.

The ISM manufacturing index came in at 53.2 for November, while construction spending rising 0.5 percent for October. Before the bell, initial jobless claims came in at 268,000, above an expected 253,000. Thursday's litany of data will build up towards Friday's November jobs report.

— Reuters contributed to this report.



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