Economic Insights

Treasurys were little changed Thursday, with benchmark 10-year note yields still at multi-decade lows, as a report showed initial claims for unemployment benefits unexpectedly fell in the latest week.

Ten-year note yields fell 1 basis point, or 0.01%, to 2.65%, the lowest since the 1950s.

Initial claims fell 21,000 to total 509,000 in the week ended Nov. 29, the Labor Department said. However, continuing claims, an indication of the difficulty of finding a new job, increased to the highest since December 1982.

"The claims data are pointing to the hardest landing, at least so far as employment is concerned, since the early 1980s," said T.J. Marta, fixed-income strategist at RBC Capital Markets.

Reports that the government is considering steps to lower mortgage rates also helped out U.S. debt, as investors speculate the government may buy Treasurys directly to lower the yields, which serve as benchmarks for mortgage loans.

Federal Reserve Chairman Ben Bernanke said Thursday that "more needs to be done" to stem foreclosures, including possibly having the government buy mortgages in bulk and refinance them.

Treasurys had moved higher before the jobless claims report, following interest rate cuts by the U.K., the European Central Bank, Sweden, New Zealand and Indonesia.

Shorter-term maturities are under more pressure, as yields are also near record lows.

Two-year note yields rose 3 basis points to 0.92% after touching 0.85% earlier this week, the lowest in at least three decades.