Treasury Yields Spike: What Mixed Jobless Claims Mean for Investors!
Following a mixed set of weekly unemployment claims statistics, Treasury rates were little higher early Friday.
Although it was marginally lower than its peak earlier in the week, the benchmark 10-year Treasury yield was 3 basis points higher at 4.607%, returning to the 4.6% level it had not crossed since May. At 4.334%, the 2-year Treasury was somewhat higher.
0.01% is equivalent to one basis point. Prices and yields move against each other.
The unemployment claims data for the week ending December 21 that was issued Thursday after the Christmas break was 1,000 lower at 219,000 than the Dow Jones consensus estimate of 225,000.
But for the week ending December 14, continuing claims increased by 46,000, reaching their highest level since November 2021.
Due to traders’ expectations of a more hawkish Federal Reserve in 2025, the 10-year Treasury yield increased by more than 40 basis points in December. A rate hold is anticipated at the central bank’s next meeting, which is scheduled at the end of January.
The deadline for monthly wholesale inventory data is this Friday.
