CNBC Arabia_ US Treasury yields fell sharply during Thursday's trading, as investors sought safe havens amid a strong sell-off in stock markets, driven by concerns regarding artificial intelligence investments and rising oil prices.
The yield on the benchmark 10-year US Treasury note, used as a reference for pricing mortgages, auto loans, and credit card debt, fell by 15 basis points to 4.996%, recording its first drop below the 5% level since September 23.
The yield on the 2-year Treasury note, which more closely reflects expectations for short-term interest rate decisions by the US Federal Reserve, fell by 14 basis points to 4.69%.
The yield on the 30-year US Treasury bond, which is often influenced by geopolitical developments, declined by 10 basis points to 5.32%, according to CNBC.
One basis point equals 0.01%, or one-hundredth of a percentage point, while yields and bond prices move in opposite directions.
The yield on the 1-month US Treasury bill registered 3.967%, dropping by 0.016 percentage points.
The yield on the 1-year note reached 4.396%, falling by 0.103 percentage points, while the yield on the 3-month bill declined to 4.13%, down 0.039 percentage points, and the yield on the 6-month bill fell to 4.297%, dropping by 0.07 percentage points.
These movements in the bond market came after stocks came under pressure following remarks by Nvidia CEO Jensen Huang to CNBC, in which he stated that demand for new cloud computing companies known as "Neocloud" had exceeded expectations, while also pointing to a scarcity of available capital.
Escalating tensions in the Middle East further pressured investor risk appetite.
In energy markets, oil prices rose sharply during Thursday's trading, with West Texas Intermediate (WTI) crude nearing the $100 per barrel mark in early trading after posting gains of over 2% to trade above $99 per barrel.
Brent crude, the global benchmark for oil prices, also climbed by more than 2% to surpass the $111 per barrel level.
These movements followed a report published by The New York Times, citing unnamed US officials, stating that the US and Israel are considering resuming strikes against Iran as part of a "short but intense" operation following the midterm elections scheduled for next month.
