U.S. Treasury yields were lower on Thursday as investors weighed recession risks and assessed the outlook for Federal Reserve policy in the new year.
The yield on the 10-year Treasury was lower by 6 basis point at 3.826%. The 2-year Treasury yield dipped below the flat line to 4.357%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
On Thursday, the Labor Department reported an increase in jobless claims from last week, amid Federal Reserve efforts to cool the economy and in particular the labor market.
First-time filings for unemployment benefits totaled 225,000 for the week ended Dec. 24, according to the report. That was an increase of 9,000 from the previous week and slightly above the 223,000 estimate from Dow Jones.
Investors look to economic data releases for clues about the outlook for 2023, as uncertainty over recession prospects and inflation developments have spread. Investors have also been assessing how these factors could affect the Fed's monetary policy decisions, especially regarding interest rates.
Many hoping that the central bank will slow, or pause, rate increases in the new year after hiking rates to the highest level in 15 years earlier this month.
Bond markets will close early on Friday and remain closed on Monday for New Year's Day.
— CNBC's Jeff Cox contributed reporting.