10-year Treasury yield rises, trading at highest levels since 2008

Treasury yields rose on Thursday after surging to highs not seen in more than a decade in the previous session.

The yield on the policy-sensitive 2-year Treasury was last at 4.589% after rising by more than three basis points.

The benchmark 10-year Treasury yield was up nearly 3 basis points 4.157%. It climbed as high as 4.18% overnight, reaching level last seen over 14 years ago in mid-2008.

Yields and prices move in opposite directions and one basis point equals 0.01%.

On the economic front, initial jobless claims came in at 214,000, below the 230,000 expected by economists according to Dow Jones. However, the Philadelphia Fed manufacturing index showed a larger than expected decline.

U.S. housing starts and building permits data for September came in below expectations on Wednesday, which investors widely understood as a sign of recession in the housing sector.

Many investors been concerned about the economy contracting as the Federal Reserve has been hiking interest rates to fight persistent inflation.

Chicago Fed President Charles Evans told reporters on Wednesday that inflation was "much too high" and that the central bank needed to continue with its current policy approach. He added that hiking rates much further would, however, "weigh on the economy."

Another 75 basis point hike is expected from the central bank at its next meeting on Nov. 1 and 2.

In Europe, U.K. Prime Minister announced her resignation. The British pound rose against the dollar on the news.