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U.S. Treasury yields declined on Wednesday ahead of an earlier market close for the holidays and after the latest data showed initial jobless claims fell to a three-week low.
The yield on 10-year Treasury notes dipped 3.1 basis points (bps) and was last at 4.137%.
The yield on the 30-year Treasury bond also fell 3.1 bps and last stood at 4.8%. Both 10- and 30-year yields declined following new data that showed initial jobless claims fell to a three-week low of 214,000 in the week of December 20, lower than expectations.
The data points "toward ongoing stability in the employment landscape despite recent signs of fragility," and the yield moves come as part of a "consolidative sideways shuffle (which) remains the prevailing trend," said Vail Hartman, U.S. rates strategist at BMO Capital Markets, in a Wednesday note.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 1.2 basis points at 3.516%.
The Treasury Department scheduled several major debt auctions this holiday week. An auction of $44 billion in seven-year notes had a bid-to-cover ratio of 2.51, which was in line with demand for previous such auctions.
Treasury auctions earlier in the week of $70 billion in five-year notes on Tuesday and Monday's $69 billion two-year note auction saw a lower bid-to-cover ratio than previous such auctions.
The seven-year yield declined 2.2 bps following Wednesday's auction to 3.917%.
The bond markets will close early on Wednesday at 2 p.m. ET and remain closed through the Christmas holiday on Thursday.
(Matt Tracy in Washington, D.C.; Editing by Kirsten Donovan)





















