Title: Fluctuating Treasury Yields and Weekly Unemployment Numbers: A Closer Look
On a recent Thursday morning, the financial markets witnessed the Treasury yields hovering around the neutral mark. Investors keenly watched this trend while processing fresh data concerning weekly unemployment claims.
The 10-year Treasury yield remained steady at 4.581% following a 5 basis point surge past the 4.6% mark. On the other hand, the 2-year Treasury observed a slight dip by 1 basis point, bringing it down to 4.329%.
For those unfamiliar with the term, a single basis point corresponds to 0.01%. It’s also essential to note that prices and yields share an inverse relationship.
Turning our attention to unemployment numbers, the Labor Department announced a total of 219,000 jobless claims for the week which concluded on December 21, 2024. This figure is marginally lower, by 1,000, compared to the preceding period and falls short of Dow Jones’ consensus forecast of 225,000.
However, the scenario is different when we look at ongoing unemployment claims, which usually lag by a week. These rose to a total of 1.91 million, indicating an increase of 46,000. This is the highest recorded level since November 13, 2021.
As for the 10-year benchmark rate, it has seen an increase of over 40 basis points within the month. The major portion of this surge occurred following the Federal Reserve’s decision to scale back rate-cut projections. The Fed now indicates just two more interest rate cuts for 2025, a significant reduction from the four potential cuts initially planned for in September.
This article provides a snapshot into the world of finance and investment, aiming to keep interested individuals updated, rather than encouraging or promoting investment activities.