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U.S. Treasury yields rise after jobless claims drop below expectations

Treasury yields increased after U.S. jobless claims unexpectedly fell to about 199,000, prompting shifts in rate expectations ahead of key early-2026 data.
U.S. Treasury yields climbed as the latest weekly jobless claims data showed fewer filings than forecast, with initial claims falling to around 199,000 for the week ending December 27. The move came just before the New Year’s holiday. The 10-year Treasury yield ticked higher while the two-year also rose, reflecting shifts in rate expectations ahead of 2026 economic data releases.