U.S. Treasury yields moved higher on Thursday after the latest developments in the U.S.-Iran war and newly released economic data put investors back on edge.
The benchmark 10-year Treasury yield was up more than 5 basis points at 4.134%, trading at its highest level since Feb. 12. The 30-year Treasury bond added 3 basis points to yield 4.747%. The 2-year Treasury note yield was 4 basis points higher at 3.583%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
U.S. crude oil resumed its surge on Thursday, reaching $80 per barrel after Iran said it attacked a tanker. West Texas Intermediate crude futures settled up more than 8% at $81.01 per barrel . Additionally, Brent crude futures settled with a gain of about 5% at $85.41 per barrel. The rally in oil prices had eased on Wednesday.
Iran's foreign minister said Thursday that the country is not pursuing a ceasefire from the U.S. and Israel, telling NBC News in an interview that "we don't see any reason why we should negotiate."
U.S. Treasury Secretary Scott Bessent told CNBC's "Squawk Box" on Wednesday that the government would be rolling out a series of measures to support oil trade in the Gulf, as the war threatened to jeopardize supplies and raise prices. Bessent also told CNBC that Trump's recently announced 15% global tariff will likely go into effect this week, after the Supreme Court struck down the President's levies in February.
Investors are focused on potential disruption to oil flowing through the Strait of Hormuz, a narrow channel that handles roughly a fifth of global crude shipments.
President Donald Trump announced Tuesday that the U.S. would provide risk insurance and escorts to tankers in the Persian Gulf to ensure traffic can move through the strait.
"Given the events in the Middle East U.S. Treasury yields are caught in a tug of war between oil-driven inflationary fears and the markets traditional safe-haven status," said Ross Pamphilon, chief investment officer at Impax. "While the situation remains fluid our strategy going into this situation was to modestly prune back risk and use a sell-off as a buying opportunity."
Investors digested the latest economic figures released Thursday as well. Jobless claims for the week ended Feb. 28 were at 213,000, below the Dow Jones forecast for 215,000. In addition, productivity and unit labor costs recorded a bigger-than-expected increase for the fourth quarter, adding to the upward pressure in yields.
Those on Wall Street are looking ahead to February's nonfarm payrolls report on Friday.