10-year Treasury yield rises above 4.6% as investors digest jobless claims data
Published On Dec 26, 2024, 7:50 AM
The 10-year Treasury yield has risen to over 4.6%, reflecting a 5 basis point increase after the recent weekly jobless claims data was released. Jobless claims were reported at 219,000, slightly below expectations. However, continuing claims rose to 1.91 million, suggesting potential growth in unemployment. The uptick in yields is linked to market adjustments following the Federal Reserve's updated projections for rate cuts, which have diminished from four cuts anticipated in September to just two in 2025.
Stock Forecasts
TLT
Negative
The increase in Treasury yields indicates a rise in investor expectations for interest rates, which can negatively impact bond prices and make equities less attractive, potentially leading to downward pressure on the stock market.
Related News
Trump’s first year will be filled with fiscal follies
Dec 24, 2024, 10:56 AM
The next 12 months could bring the ugliest fights to date over the ever-ballooning national debt.
Spending Fight Shows Limits of Trump Power to Change Fiscal Path
Dec 24, 2024, 1:40 PM
Efforts to cut government spending and eliminate waste are dwarfed by the rising costs of the social safety net programs and interest expenses.
Stocks Plunge as Fed Forecasts Fewer Rate Cuts Next Year
Dec 18, 2024, 4:06 PM
The Federal Reserve cut rates for a third time this year, but investors shuddered at revised forecasts suggesting only two cuts in 2025.