Authorities bond yields have been combined forward of unemployment claims knowledge
US Treasury bond yields were flat on Thursday morning after data showed that initial jobless claims rose faster than expected last week.
The benchmark 10-year Treasury note yield fell to 1.63% around 1:45 p.m. ET. The yield on the 30-year government bond fell to 2.317%. The returns move inversely to the prices.
The Department of Labor reported that Thursday’s initial filings for the week ending April 3 totaled 744,000, well above the 694,000 expectation of economists polled by Dow Jones.
The news comes a week after a report on blowout jobs, as the non-farm workforce rose 916,000 in March while the unemployment rate fell to 6%.
Recently, returns have risen on inflation concerns as the coronavirus pandemic rebounded economically. However, the Federal Reserve announced at its March meeting that it would allow inflation to exceed its long-term target of 2% if it helps to achieve full employment.
Minutes of the March March Fed meeting, released on Wednesday, confirmed that adjustment policies should be maintained until economic “results” are achieved.
Sarah Hewin, director of research for Europe and America at Standard Chartered Bank, told CNBC’s Squawk Box Europe on Thursday that it appeared that the Fed had taken into account some of the improvements in economic data since that last meeting.
“So I think that in large part they are taking into account some very high salary numbers in the coming months,” she said, but added that there was uncertainty about “how far the current strength of the economy will hold”.
However, Hewin cited a study published yesterday by the New York Fed that highlighted that many of the recent economic tests have been put into saving and paying off debt rather than being spent. She suggested it was “sensible” for the Fed to take a “cautious approach” to policy at this stage.
She added: “There is still a large output gap and, from the Fed’s perspective, this output gap needs to be closed in order for inflation to get back on target and actually stay above target for a while.”
Auctions will be held Thursday for 4-week invoices valued at $ 40 billion and 8-week invoices valued at $ 40 billion.
– CNBC’s Thomas Franck contributed to this report.