Treasury Yields Are Muted as Investors Track Key Economic Data

Frank Polich | Reuters

U.S. Treasury yields were mixed Thursday as investors assessed recent labor market data in order to gauge the possibility of an upcoming recession.

The yield on the benchmark 10-year Treasury note was higher by 1 basis point at 3.298%, while the yield on the 30-year Treasury bond fell by around 1 point to 3.546%. The 2-year rate, meanwhile, popped 6 basis points to 3.829%.

Yields move inversely to prices.

Jobless claims totaled 228,000 for the week ended April 1, as signs build that the labor market is coming under pressure, the Labor Department reported Thursday.

The total actually represented a decline of 18,000 from the week before, following seasonal revisions that took the initially reported number up by 48,000 to 246,000. Economists surveyed by Dow Jones had been looking for 200,000 from Thursday's report.

Yields were under pressure Wednesday after the ADP private payrolls report came in below expectations, signaling a slowdown in hiring in March, while the ISM Services index also showed slower-than-expected growth, adding to recession fears.

Future monetary policy moves remain in focus, with the Federal Reserve continuing to tackle inflation and the aftermath of banking collapses that caused turmoil in bond markets in recent weeks.

The Federal Reserve is next scheduled to meet in early May, and the market is split on whether the central bank will pause or hike rates by a further 25 basis points, according to the CME Group's FedWatch tool.

Investors will be closely watching Friday's nonfarm payrolls report for further signs that the Fed's monetary policy tightening is beginning to cool the economy.

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