US Treasury Yields Retreat as Markets Eye Economic Data

US Treasury yields retreated on Thursday as investors looked ahead to key economic data for clues on growth, inflation, and the Federal Reserve's next steps. The benchmark 10-year Treasury yield fell more than 2 basis points to 4.7680%, while the policy-sensitive two-year yield dropped about 2 basis points lower at 4.3609%. Investors are now turning their attention to Friday's US nonfarm payrolls report and unemployment data for August.

Economists expect the report to show the US economy added 58,000 jobs during the month, while the unemployment rate is forecast to remain unchanged at 4.1%. The data could provide a fresh indication of how much room the Federal Reserve has to adjust interest rates as markets assess the outlook for inflation and economic growth.

The move in US Treasuries followed a broader recovery in global government bonds after yields reached multi-year highs. The 10-year UK gilt yield fell five basis points to 5.18% after touching its highest level since August 2007 earlier this week, while Germany's 10-year yield edged two basis points lower.