US Treasury yields rose on Friday as investors digested the previous day’s data release, which showed jobless claims falling, below expectations.
The yield on the benchmark 10-year Treasury note was up 4 basis points to 2.926% at 8:30 a.m. ET, while the yield on the 30-year Treasury note traded up about 3 basis points to 3.1728%. Yields move inversely to prices, and a basis point is equal to 0.01[ads1]%.
The yield on the short-term 2-year Treasury note also traded around 2 basis points higher at 3.255%.
The rise in interest rates was a shift from the previous session, which saw interest rates cool as markets pondered the Federal Reserve’s released July meeting minutes. The Fed indicated it would continue to raise interest rates until inflation slows significantly, although the central bank may soon slow the pace of tightening.
Thursday also revealed a further slowdown in housing demand, with home sales falling nearly 6% in July as the housing market enters a contraction.
Jobless claims were counted at 250,000 for the week ending August 13, down 2,000 from the previous week and below the Dow Jones estimate of 260,000.
Market and monetary policy officials are watching the labor market closely, as rate hikes aim to cool a labor market and 40-year high inflation. Fed policymakers said lowering inflation is the top priority, even if it means a slowdown in hiring, according to minutes released Wednesday.
The Fed is considering another big rate hike in September, St. Louis Fed President James Bullard said Thursday, adding that he cannot say for sure that inflation has peaked.
“We should continue to move quickly to a level of the policy rate that will put significant downward pressure on inflation … I don’t really see why you want to drag out rate hikes into next year,” Bullard said in an interview with Wall Street Journal.
Data releases on oil rig counts by Baker Hughes are due on Friday.