U.S. Treasury yields climbed on Thursday, with the benchmark 10-year Treasury yield rising more than three basis points to 4.371% and the 2-year yield edging up to 4.012%.
Markets are digesting President Trump’s announcement of new 25% tariffs on all foreign-manufactured automobiles, though vehicles containing U.S.-made parts will be exempt. The tariff plan has heightened concerns about potential economic fallout, coming as other indicators point to softening in the U.S. economy — including consumer confidence, which recently fell to a 12-year low.
At the same time, the latest labor data provided a measure of reassurance. Initial jobless claims for the week ending March 22 fell by 1,000 to 224,000, broadly in line with expectations, and continuing claims also edged lower. Investors are now focused on Friday’s release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred gauge of inflation, for further clues on the economic outlook and potential policy moves.