U.S. Treasury yields gained Thursday after the latest jobless claims data pointed to an improving labor market. Investors also assessed ongoing geopolitical uncertainty.
The benchmark 10-year Treasury yield rose more than 1 basis points at 4.154%. The yield on the 2-year Treasury advanced more than 4 basis points to 3.556%. Meanwhile, the 30-year Treasury yield was 1 basis point lower at 4.784%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
The latest weekly jobless claims data pointed to a solid jobs market, which could lower expectations for interest rate cuts from the Federal Reserve. Initial claims for the week ending Jan. 10 came in at 198,000, lower than the 215,000 expected by economists polled by Dow Jones.
Odds of an interest rate cut coming early in April fell from the day prior, to 30.2% from 34.6%, according to the CME FedWatch Tool. Markets were last pricing in two quarter point cuts in 2026.
Geopolitical risks have dominated headlines this week and investors are watching as Trump insists on taking ownership of Greenland — an autonomous region within the Kingdom of Denmark — claiming it’s central to U.S. national security.
A White House meeting between officials from Greenland, Denmark, and the U.S. took place on Wednesday but a Danish official said it ended with “fundamental disagreement” over ownership of the Island.
Meanwhile, tensions between the U.S. and Iran have also been weighing on investors amid speculation that the U.S. could launch a military strike in response to Iran’s crackdown on widespread protests.
However, Trump signaled Wednesday that he might hold off on attacking, saying: “We’ve been told that the killing in Iran is stopping… and there’s no plan for executions.”
An ongoing criminal investigation into Federal Reserve Chairman Jerome Powell is also raising concerns about the Fed’s independence amid White House intimidation and whether it can remain unburdened by political influence on monetary policy.
Global central bankers have defended Powell, saying that the independence of central banks “is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.”
— CNBC’s Jeff Cox contributed to this report.
