U.S. Treasury yields advanced on Thursday as Brent crude oil's climb above $100 per barrel raised inflation fears, and as weekly claims for unemployment insurance tumbled below 200,000.
The yield on the 10-year U.S. Treasury note — the key benchmark for mortgage and auto loans and credit card debt — was last seen up more than 4 basis points at 4.699%. It earlier rose above 4.7%, hitting the highest level since Jan. 15, 2025.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, rose more than 5 basis points to 4.353%.
Oil prices continued to climb on Thursday, with Brent crude futures gaining 7% to close at $100.69 a barrel.
As inflation fears heightened, expectations that the Federal Reserve will raise interest rates increased as well.
Jobless claims for the week ended July 18 came in at 187,000, below the 212,000 that economists polled by Dow Jones were expecting.
"The economy may be heating up today, but the path ahead for the employment markets could still be rockier," said Chris Rupkey, FWDBONDS chief economist.
