US Treasury Yields Drop as Job Market Shows Strength

NEW YORK, NY — U.S. Treasury yields fell on July 24, 2025, after reports revealed jobless claims dropped to their lowest point since April. This data signals a resilient labor market, allowing the Federal Reserve to maintain its current policy without immediate rate cuts.

Benchmark 10-year Treasury yields increased by five basis points, reaching 4.43%. This uptick comes as money markets slightly adjusted their expectations, now anticipating fewer than two rate cuts from the Fed this year. Meanwhile, major stock indices lingered near record highs, driven by an influx of corporate earnings reports.

Unemployment benefit applications fell for the sixth consecutive week, marking the longest streak of declines since 2022. Analysts believe that the labor market’s steady performance will play a crucial role in the upcoming Federal Reserve policy meeting.

Bret Kenwell from eToro remarked, “While the labor market is not firing on all cylinders, it’s not showing signs of distress either.” He added that if the forthcoming jobs report continues to reflect positive trends, it may further ease concerns and give the Fed more flexibility regarding interest rates.

Chris Larkin from E*Trade echoed this view, stating, “Today’s jobless claims total paints a familiar picture — there are still few signs of major cracks in the labor market. If that picture remains intact, the Fed has one less reason to cut interest rates.”