(RTTNews) – Treasuries moved mostly higher over the course of the trading session on Thursday, extending the upward move seen over the two previous sessions.
Long-term bond prices climbed more firmly into positive territory as the day progressed after initially showing a lack of direction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 4.207 percent.
The ten-year yield closed lower for the third straight day, dropping to its lowest closing level since briefly dipping below 4.2 percent earlier this month.
The continued strength among treasuries came as traders continued to keep an eye on developments regarding President Donald Trump’s efforts to exert influence over the Federal Reserve with the firing of Fed Governor Lisa Cook.
Cook has filed a lawsuit challenging Trump’s attempt to remove her, with a hearing set for Friday morning on her request to temporarily block the move.
The attempt to fire Cook is likely to be decided by the U.S. Supreme Court, where Republican-appointed Justices hold a significant majority.
Trump’s efforts to secure majority control of the Federal Reserve are expected to lead to lower interest rates in the short term.
Investors were also looking ahead to Friday’s release of the Commerce Department’s on personal income and spending in the month of July, which includes the Federal Reserve’s preferred readings on consumer price inflation.
The report, which is expected to show an uptick in the annual rate of core consumer price growth to 2.9 percent in July from 2.8 percent in June, could impact the outlook for interest rates.
CME Group’s FedWatch Tool is currently indicating an 87.2 percent chance the Fed will lower rates by a quarter point at its next monetary policy meeting in September.
Meanwhile, bond traders largely shrugged off some upbeat U.S. economic data, including a Commerce Department report showing the U.S. economy grew by more than previously estimated in the second quarter of 2025.
The report said real gross domestic product shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge. Economists had expected the jump in GDP to be upwardly revised to 3.1 percent.
The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to investment and consumer spending.
A separate report released by the Labor Department on Thursday showed a modest decrease by first-time claims for U.S. unemployment benefits in the week ended August 23rd.
The consumer price inflation data is likely to be in the spotlight on Friday, overshadowing reports on Chicago-area business activity and consumer sentiment.
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