UST yields rise after strong US data

NEW YORK, May 25 (Reuters) – US Treasury yields rose on Thursday after data showed further strengthening in the labor market. At the same time, the increase in short-term bonds was weakened by the statements of the Speaker of the House of Representatives, Kevin McCarthy, about some progress in negotiations on raising the public debt ceiling.

6-month profitability <912796ZG7=> bonds due on June 1 fell below 7%.

The 2Y UST yield, which usually reflects interest rate expectations, rose by 9.3 bp. to 4.436%, while the yield on 10-year US Treasuries increased by 5.4 bp. to 3.773%.

The number of new jobless claims in the US rose to 229,000 last week, while analysts had forecast 245,000 based on preliminary data.

The decline in claims is in line with the latest data on retail sales, factory production and economic activity, which point to a recovery in economic growth at the beginning of the second quarter.

The inversion of the yield curve between 2-year and 10-year bonds is minus 66.7 basis points.

The inflation-adjusted 10-year bond yield was 2.27%, indicating that the market expects inflation to average 2.3% per year over the next decade.

The five-year Treasury, secured against inflation, yielded 2.553%.

The original message in English is available at the code: (Tom Westbrook)