30 Apr 2015
Treasury yields rise on a sharp drop in the jobless claims
FXStreet (Mumbai) - The yields on the short duration and long duration treasuries in the US rose after the labor department data showed the initial jobless claims in the last week fell to 15-year lows.
The 10-year yield rose to an intraday high of 2.099%, while the 30-year yield rose to 2.793. Meanwhile, the 2-year yield, which mimics short-term interest rate expectations, rose to a high of 0.606%.
The initial jobless claims dropped by 34K to 262K in the week ended April 25, the lowest since April 15, 2000. The actual figure was smaller than the consensus estimate of 290K. The sharp drop in the jobless claims supports the Fed’s view that the job gains are likely to continue despite the slowdown in the first quarter.
Meanwhile, the disappointing personal income and a weaker-than-expected personal spending data for March was ignored by the treasuries mainly because both the numbers were included in the first quarter GDP report released on Wednesday, showed the economy growing at only a 0.2% annual pace after a 2.2% rate in the fourth quarter.
The 10-year yield rose to an intraday high of 2.099%, while the 30-year yield rose to 2.793. Meanwhile, the 2-year yield, which mimics short-term interest rate expectations, rose to a high of 0.606%.
The initial jobless claims dropped by 34K to 262K in the week ended April 25, the lowest since April 15, 2000. The actual figure was smaller than the consensus estimate of 290K. The sharp drop in the jobless claims supports the Fed’s view that the job gains are likely to continue despite the slowdown in the first quarter.
Meanwhile, the disappointing personal income and a weaker-than-expected personal spending data for March was ignored by the treasuries mainly because both the numbers were included in the first quarter GDP report released on Wednesday, showed the economy growing at only a 0.2% annual pace after a 2.2% rate in the fourth quarter.