New data and a strong bond auction cause 10-year Treasury yields to decrease.

U.S. unemployment data and a bond auction with strong demand led to a decline in Treasury yields on Thursday.

The 2-year Treasury yield decreased by approximately 3 basis points to 4.815%, while the yield on the was down more than 2 basis points at 4.457%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

Since August, the highest number of weekly initial jobless claims were recorded, which amounted to 231,000.

José Torres, Interactive Brokers senior economist, wrote that while the initial claims level is not currently a concern, the upward trend in data requires caution. If this trend continues, it will result in a relative increase in unemployment.

The sale of $25 billion worth of 30-year bonds by the Treasury Department put additional pressure on yields.

This year, investors are considering the possibility of lower interest rates occurring. The bid-to-cover ratio, a measure of demand, was 2.41, which is above the 10-auction average. Additionally, direct bidders, such as mutual funds and insurance companies, reached their highest level since July 2023 at 19.8%.

Recent weeks have seen persistent uncertainty about the frequency, timing, and implementation of monetary policy rate cuts, following comments from Federal Reserve officials.

On Wednesday, Boston Fed President Susan Collins joined other central bank policymakers in stating that interest rates are likely to remain unchanged until inflation moves closer to the Fed's 2% target range. Her comments mirrored those made by Minneapolis Fed President Neel Kashkari and Richmond Fed President Tom Barkin earlier in the week. Additionally, their views aligned with the guidance provided by the Fed following its recent meeting.