U.S. 10-year Treasury yields hit 5-week high on steep fall in jobless claims; investors eye Fed Chair Yellen’s speech

The U.S. 10-year Treasury yields hit 5-week high on the last trading day of the week, following steeper-than-expected fall in initial jobless claims, released on Thursday. Also, investors will be closely eyeing the Federal Reserve Chair Janet Yellen’s speech scheduled to be held later in the day.

Further, Fed President Evans, the Federal Open Market Committee (FOMC) members Lacker, Powell and Fischer’s comments will also accompany through the day for detailed direction in the bond market.

The yield on the benchmark 10-year Treasury jumped over 1-1/2 basis points to 2.50 percent, the super-long 30-year bond yield also surged 1 basis point to 3.09 percent and the yield on short-term 2-year note traded nearly 1/2 basis point higher at 1.32 percent by 11:40GMT.

Initial jobless claims for the week ending February 25 fell 19k, to the lowest level in more than 40 years, 223k. This was well below consensus expectations of 245k. The four-week moving average in initial claims fell to 234k from 240k.

"Although we do not see claims remaining at this low level, they will likely rebound somewhat next week. The data are unambiguous evidence that the labor market in the US continues to tighten. Workers are not being laid off in large numbers. The breadth of improvement across states indicates that this is a national phenomenon," Barclays research commented in its recent research report.

Meanwhile, the S&P 500 Futures fell 0.10 percent or 2.50 points to 2,379.50 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 92.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex