Treasury yields rise after jobless claims report

US Treasury yields rose on Friday as investors digested the previous day’s data, which showed unemployment claims falling, below expectations.

return on standard 10-year treasury bonds It was up 4 basis points at 2.926% at 8:30 AM ET, while the yield on 30 year treasury bonds It traded up 3 basis points to 3.1728%. Yield moves inversely with prices, and the basis point is 0.01%.

The yield on the two-year short-term Treasuries was also trading up about 2 basis points at 3.255%.

The rise in yields was a reversal from the previous session, which saw yields dip as markets pondered the minutes of the Federal Reserve’s July meeting. The Fed has indicated that it will continue to raise interest rates until inflation slows significantly, although the central bank may soon reduce the pace of tightening.

Thursday also revealed a further slowdown in housing demand, with Home sales fell nearly 6% in July As the housing market enters a downturn.

The number of jobless claims came to 250,000 for the week ending August 13, down 2,000 from the previous week and below the Dow Jones estimate of 260,000.

Markets and monetary policy officials are keeping a close eye on the labor market, as price increases are aimed at calming the labor market and a 40-year high rate of inflation. Federal Reserve policymakers have said lowering inflation is a top priority, even if it means a drop in employment, according to meeting minutes released on Wednesday.

Louis Federal Reserve Chairman James Bullard said Thursday that the Fed is considering raising interest rates again in September, adding that he cannot be certain that inflation has peaked.

“We must continue to move quickly to a policy rate level that will put significant downward pressure on inflation…I really don’t understand why you would want to drag the rate increases into next year,” Bullard said. He said in an interview With The Wall Street Journal.

On Friday, data on oil rig count by Baker Hughes is scheduled to be released.