U.S. Treasury yields rose Friday as investors’ jitters over a potential credit crisis in the banking sector eased.
The 10-year Treasury yield was up 3 basis points to 4.005%. The 2-year Treasury note also rose 3 basis points to 3.459%. The 30-year bond yield ticked up 2 basis points to 4.602%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Treasury yields are trading higher following traders’ flight to safe-haven assets on Thursday when concerns about bad lending practices in the private credit market flared up. Zions Bancorporation had disclosed on Wednesday a $50 million loss on two commercial loans. Then, Western Alliance claimed Thursday that a borrower had committed fraud. The back-to-back incidents prompted concern that risky loans may be lurking on banks’ books. However, as investors digested the news, opinion appeared to be shifting to see the loan losses as a manageable situation and…
