10-year Treasury yield rises above 4.6% as investors digest jobless claims data

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10-year Treasury yield rises above 4.6% as investors digest jobless claims data

On December 17, 2024, traders work on the New York Stock Exchange.

NYSE

Treasury yields rose Thursday morning as investors digested new weekly jobless claims data.

The yield on the 10-year Treasury note rose 5 basis points to 4.633%. The 2-year Treasury note traded 2 basis points higher at 4.359%.

One basis point is equal to 0.01%. Yields move in the opposite direction to prices.

The Labor Department said Thursday that applications for unemployment benefits totaled 219,000 in the week ending Dec. 21. The figure was just 1,000 below the previous period and below the Dow Jones consensus forecast of 225,000.

However, ongoing claims, which are a week in arrears, increased to 1.91 million, an increase of 46,000 and the highest level since November 13, 2021.

The benchmark 10-year Treasury rate rose more than 40 basis points this month. Most of the increase came after the Federal Reserve downgraded its rate cut forecasts, announcing just two more rate cuts in 2025, compared to the four possible rate cuts planned in September.