Treasury yields are subdued as traders comply with key financial knowledge

US Treasury yields were mixed on Thursday as investors assessed the latest jobs data to gauge the possibility of an imminent recession.

The benchmark 10-year Treasury yield rose 1 basis point to 3.298%, while the 30-year Treasury yield fell around 1 point to 3.546%. The 2-year rate, meanwhile, rose 6 basis points to 3.829%.

Yields move inversely with prices.

Jobless claims totaled 228,000 for the week ended April 1 as signs mounting the labor market is coming under pressure, the Labor Department reported on Thursday.

The total actually represented a decrease of 18,000 from the previous week after seasonal revisions increased the originally reported number by 48,000 to 246,000. Economists polled by Dow Jones had been looking for 200,000 from Thursday’s report.

Yields came under pressure on Wednesday after the ADP personal payroll report came in below expectations and showed a slowdown in hiring in March, while the ISM services index also showed slower-than-expected growth, adding to recession fears.

Future monetary policy moves remain in focus, with the Federal Reserve continuing to tackle inflation and the aftermath of bank failures that have roiled bond markets in recent weeks.

The next Federal Reserve meeting is scheduled for early May and the market is divided on whether the central bank will pause rates or hike another 25 basis points, according to CME Group’s FedWatch tool.

Investors will be watching Friday’s nonfarm payrolls report closely for further signs that the Fed’s monetary tightening is beginning to cool the economy.

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