U.S. Treasury yields rose Thursday as investors assessed robust jobs data and recent remarks from Federal Reserve officials that dashed hopes for a March rate cut.
The 10-year Treasury yield added about 6 basis points to 4.156%, while the 2-year Treasury yield rose about 4 basis points to 4.458%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
The rise in yields came amid another batch of resilient jobs data, with initial filings for unemployment insurance moving lower last week to 218,000 as employers retained workers. That was below a Dow Jones estimate of 220,000.
"Net, net, the labor market remains solid as a rock and this argues for Fed officials to take their time with taking down its key interest rate as monetary policy may not be as restrictive as policymakers assumed," said Chris Rupkey, chief economist at FWDBONDS.
Investors also parsed recent commentary from Fed officials that suggested fewer 2024 rate cuts than previously expected.
Minneapolis Fed President Neel Kashkari told CNBC's "Squawk Box" on Wednesday that he believes two or three rate cuts would take place in 2024, while Fed Governor Adriana Kugler said that more data is needed to provide evidence of an ongoing trend lower even as inflation eases.
The commentary echoed remarks made by Fed Chairman Jerome Powell last week that stoked concerns about fewer rate cuts this year and pushed off the likelihood of a March trim. He also said that policymakers would take a cautious approach to cutting and closely monitor the latest economic data.
The next major data release is set to come next week in the form of January's consumer price index. Before then, several other Fed speakers are due to speak.