U.S. Treasury yields fell on Thursday as investors responded to labor data that could indicate some cooling in the job market.
The yield on the 10-year Treasury was last down by 6 basis points at 3.581%. The 2-year Treasury also fell by just over 3 basis points to trade at 4.423%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Weekly jobless claims released Thursday jumped by 13,000 to 196,000, more than expected and running contrary to a string of recent data indicating the labor market remained hot. Treasury yields fell after the the data as investors bet that maybe the job market could cool enough to prompt the central bank to once again slow interest rate hikes.
Investors digested a series of remarks from Fed officials made throughout the week that provided fresh insights into their expectations for the U.S. economy and views on future monetary policy.
Fed Governor Christopher Waller indicated on Wednesday that interest rates could be increased by more than investors are expecting. During his remarks at the Arkansas State University Agribusiness Conference, he also suggested that the Fed ‘s battle with inflation was far from over.
This echoed the tone struck by other Fed speakers, including Chairman Jerome Powell and Minneapolis Fed President Neel Kashkari, earlier this week.
The Fed has hiked interest rates eight times since March 2022 as part of its efforts to slow the economy and lower inflation. Many investors are concerned that the pace of rate increases could lead the U.S. economy into a recession and are hoping for the Fed to pause rate hikes this year.
