Today’s update on initial jobless claims deals another blow to the notion that the Federal Reserve will lower interest rates any time soon.
The Labor Department reported this morning that workers filing for unemployment benefits for the first time dropped to 299,000 last week. That’s the lowest number of weekly filings since last July 22.
The evidence, in other words, is mounting that the economy isn’t as weak as previously thought. The outlook adjustment promises to weigh heaviest on the bond market, which seems to be rethinking the appropriate level of yield on the benchmark 10-year Treasury. As of yesterday’s close, the 10-year traded at 4.68%, up from 4.43% on December 1.