Bond Market Update

Data Recon 

• Initial jobless claims for the week ending January 10 decreased by 9,000 to 198,000 (Briefing.com consensus: 210,000). Continuing jobless claims for the week ending January 3 decreased by 19,000 to 1.884 million.
  • The key takeaway from the report is that it corroborates a low firing-low hiring environment that will keep the Fed on watch, but also on hold in terms of a rate cut this month and possibly until June, which is when the fed funds futures market is projecting the first cut in 2026.
• Yield Check:
  • 2-yr: +4 bps to 3.55%
  • 3-yr: +4 bps to 3.60%
  • 5-yr: +4 bps to 3.75%
  • 10-yr: +2 bps to 4.16%
  • 30-yr: -1 bp to 4.79%