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10-Year Yield Rises, Reversing Some of Wednesday's Major Losses

Courtney Crow | Xinhua News Agency | Getty Images

Treasury yields rose across the board Thursday, with the 10-year note reversing some of the losses it made on Wednesday after the Bank of England launched a bond-buying plan designed to stabilize market chaos in the U.K.

The yield on the benchmark 10-year Treasury rebounded to 3.749%. During Wednesday's session, it plummeted by 25 basis points after briefly breaching the 4% mark. That marked the largest intraday drop since 2020.

The policy-sensitive 2-year Treasury yield also rose to 4.176%.

Yields and prices have an inverted relationship and one basis point is equivalent to 0.01%.

Bond markets have been contending with concerns about rising interest rates, a looming recession and high volatility in global currency markets.

The British pound slid to historical lows against the dollar and the U.K. 10-year gilt soared to 14-year highs earlier in the week. On Wednesday, the Bank of England said it planned to temporarily push back gilt sales and buy long-dated bonds to stabilize the situation.

Meanwhile, a series of Federal Reserve speakers made hawkish comments throughout the week, causing traders to anticipate further interest rate hikes. This has, however, also stoked fears of a recession among investors who are concerned about the speed of rate hikes.

Jobless claims for the week ended Sept. 24 totaled 193,000, hitting a five-month low, according to the Labor Department on Thursday. The figure was lower than the prior week's adjusted 209,000 and below the 215,000 Dow Jones estimate.

CNBC's Jeff Cox contributed to this report.

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