Early Friday saw a slight uptick in Treasury yields following a mixed bag of data concerning weekly jobless claims.
The yield on the benchmark 10-year Treasury note increased by 3 basis points to reach 4.607%. Although this was a bit lower than its peak earlier in the week, it managed to climb back above the 4.6% mark, a level it hadn’t crossed since May. The yield on the 2-year Treasury was just a tad higher, sitting at 4.334%. To clarify, one basis point represents 0.01%, and it’s crucial to remember that yields and prices move in opposite directions.
After the Christmas break, jobless claims data for the week ending December 21 were released on Thursday. The numbers showed claims at 219,000, which is 1,000 less than expected and below the 225,000 Dow Jones had forecasted. On the flip side, continuing claims increased by 46,000 for the week ending December 14, reaching their highest level since November 2021.
Throughout December, the 10-year Treasury yield has climbed over 40 basis points as traders brace for a potentially more aggressive Federal Reserve stance in 2025. The next meeting of the central bank is scheduled for the end of January, and many anticipate they will hold rates steady.
In addition, we can expect the release of monthly wholesale inventories data this Friday, which will be closely watched by market participants.
