Treasury Yields Hold Steady As Labor Data And Fed Rate-Cut Plans Shape Market Outlook

Treasury yields remained near the flatline Thursday morning as investors assessed weekly jobless claims data. The 10-year Treasury yield was flat, while the 2-year yield fell 1 basis point. Jobless claims for the week ending Dec. 21 totaled 219,000, slightly below the prior week and under the Dow Jones consensus forecast. Continuing claims rose by 46,000, marking the highest since November 2021. The 10-year yield has climbed over 40 basis points this month, driven by the Federal Reserve's reduced rate-cut projections for 2025, signaling only two cuts compared to the four that were previously anticipated.