Bond Market Commentary

Over in bond land, Treasury yields are mostly higher before the opening bell Thursday as investors look forward to the latest jobless claims data. The yield on the 10-year note is rising two basis points (0.02%) to 4.51%, while the 30-year bond yield is increasing three basis points (0.03%) to 4.67%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 4.84%.

Treasury yields were higher on Wednesday, as investors evaluated the final release for March’s wholesale inventories, which decreased in line with expectations. Boston Federal Reserve (Fed) President Susan Collins suggested that interest rates are likely to remain unchanged until inflation shows a clear trend towards the Fed’s target. The yield on the 10-year note was up three basis points (0.03%) to 4.49%, while the 30-year bond yield rose four basis points (0.04%) to 4.64%. The yield on the two-year note increased one basis point (0.01%) to 4.84%.

On the data front today, initial jobless claims for the week ending May 4 are expected to be 212,000, higher than the prior week’s 208,000, while continuing claims for the week ending April 27 are projected to register 1.78 million, slightly higher than the prior week’s 1.77 million.

In the auction space, the U.S. Treasury is set to issue $80 billion in four-week bills, $80 billion in eight-week bills, and $25 billion in 30-year notes.

In the central bank space, San Francisco Fed Governor Mary Daly is scheduled to speak today.

The Bloomberg 30-day visible supply fell $4.668 billion to $10.609 billion on Wednesday, above the 12-month average of $9.139 billion.

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