US Treasuries saw a slight decline on Thursday, driven by a rebound in oil prices, while trading remained rangebound with minimal catalysts ahead of Federal Reserve Chair Kevin Warsh's highly anticipated speech at the Jackson Hole symposium on Friday. Yields across maturities moved within a tight band, with the 10-year note's intraday fluctuation staying under 4 basis points.

The auction of 7-year US notes met expectations, with the awarded yield aligning with pre-auction levels. Around 3:00 pm in New York, Treasury yields were up roughly 2 to 3 basis points, keeping them within this week's established range. WTI crude oil futures settled 1.6% higher at $83.53 per barrel.

Ahead of Warsh's remarks scheduled for 10:00 am New York time on Friday, overnight index swaps (OIS) tied to Fed meetings indicated that markets have priced in approximately 9 basis points of tightening for the September 16 meeting, while fully anticipating a 25-basis-point rate hike by year-end. Two Fed officials—Kansas City Fed President Schmid and Cleveland Fed President Hammack—both stated on Thursday that, with inflation persistently above the 2% target, the current level of interest rates is not constraining the US economy.

The Treasury's $44 billion auction of 7-year notes came in with a high yield of 4.512%, the highest since December 2024, matching the pre-auction yield at the 1:00 pm New York bidding deadline, signaling that demand was in line with expectations. Treasury futures volume has gradually returned to normal levels as the impact of calendar roll activity fades.

As of 3:44 pm Eastern Time, the 2-year yield stood at 4.232%, the 5-year at 4.3961%, the 10-year at 4.6743%, and the 30-year at 5.1921%. The 2-year/10-year yield spread was 43.82 basis points, while the 5-year/30-year spread was 79.42 basis points.