Treasurys rally on geopolitical jitters from oil tanker attack No ratings yet.

U.S. Treasury prices rose Thursday, pulling yields lower, after two oil tankers came under attack in the Gulf of Oman, a key shipping artery for oil products.

What are Treasurys doing?

The 10-year Treasury note yield

TMUBMUSD10Y, -0.17%

  edged lower by 1.4 basis points to 2.115%. The 2-year note yield

TMUBMUSD02Y, -0.02%

  fell 2.5 basis points to 1.864%, while the 30-year bond yield

TMUBMUSD30Y, -0.17%

  was down 0.8 basis point to 2.615%. Debt prices move in the opposite direction of yields.

What’s driving Treasurys?

Investors bought U.S. government bonds following reports that oil tankers were attacked by an unknown party in the Gulf of Oman on Thursday, forcing an evacuation of the ships. The geopolitical uncertainty helped lift energy prices but pointed to another hurdle for the global economy as the attacks took place in a shipping route used by several Middle Eastern countries to export oil.

U.S. crude futures

CLN19, +3.58%

  rose 3.4% to $52.86 a barrel.

On the U.S.-China trade front, Vice Premier Liu He said regulators should increase support for the Chinese economy and financial system. His comments came after data showed China’s policy easing did not lead to a material pick-up in credit growth.

See: Oil prices surge after two tankers reportedly attacked near Strait of Hormuz

Read: Strait of Hormuz: Oil ‘choke point’ in focus as U.S. ends Iran waivers

What else is on investors’ radar?

In economic data, jobless claims and import prices numbers are set for release at 8:30 a.m. Eastern. Investors said they would mostly look past Thursday’s data releases to focus on the upcoming retail sales report the following day, which could give an indication of how consumers are faring.

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