Bond Report: 2-year yield hits another 52-week high, 10-year rate highest since May as weekly jobless claims fall to pandemic low

Treasury yields moved higher Thursday as U.S. weekly jobless benefit claims fell to a pandemic low of 290,000 and traders began factoring in a higher annual pace of consumer-price gains for the rest of the year, just ahead of the Federal Reserve’s blackout period next week. The rise in yields included the 5-year rate BX:TMUBMUSD05Y, which rose above 1.2% and reflects expectations for a forthcoming cycle of rate hikes from the Fed that may start next year. The two-year yield hit another 52-week high, while the 10-year rate climbed to a level not seen since May.

What are yields doing? What’s driving the market?

Treasury…