US Treasury yields mostly rose on Thursday, adding to the ongoing selling in the bond market, with the 30-year yield earlier touching its highest level since 2004.
Bond prices, which move inversely to yields, sold off on Wednesday after a stronger-than-expected US purchasing managers' report reignited inflation fears and caused traders to increase bets on Federal Reserve rate hikes. European bond prices also fell.
Following a poor auction of five-year notes on Wednesday, investors will be watching Thursday's auction of US seven-year notes later in the day closely.
The yield on the benchmark US 10-year Treasury note was up 1.1 basis points at 5.125%.
The yield on the 30-year bond rose 1.8 basis points to 5.42%.
Bond prices around the world have been under pressure for months as the U.S.-Israeli war on Iran has pushed up energy prices while growth has remained resilient.
Investors are also weighing the likelihood for more rate hikes from the Fed, which raised interest rates last week for the first time since 2023 in an effort to control inflation.
Yields were off mostly off earlier highs of the day.
"Today we're cleaning up a little bit on the long end. The long end is trading a bit better," said Thomas Simons, chief US economist at Jefferies.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a positive 24.7 basis points.
The two-year US Treasury yield, which typically moves in step with interest rate expectations for the Fed, fell 1.8 basis points to 4.877%.
