Initial claims for the week ending August 26 decreased by 4,000 to 228,000 (consensus 235,000) and continuing claims for the week ending August 19 increased by 28,000 to 1.725 million.
The key takeaway from the report is that initial claims — a leading indicator — continue to run at levels that are indicative of a tight labor market that goes hand-in-hand with an economy that is definitely not in a hard-landing pattern.
Treasuries are little changed from yesterday’s settlement levels following the data.
The 2-yr note yield is unchanged at 4.88% and the 10-yr note yield is down one basis point to 4.11%.