Treasury yields climb on positive economy and labor data

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U.S. Treasury yields rose Thursday following better-than-expected economic data.

The 10-year Treasury yield was higher by 4 basis points at 4.479%, while the 2-year Treasury yield increased by nearly 6 basis points at 4.935%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Services and manufacturing gauges for May both were higher-than-expected and showed expansion in both sectors, according to purchase manager surveys from S&P Global released Thursday.

The services activity index posted a 54.8 reading on the month, while manufacturing was at 50.9. Both rose on a monthly basis and topped respective Dow Jones estimates for 51.5 and 50. The two indexes also showed that input prices "continued to rise sharply," S&P said in the report.

Weekly jobless claims numbers on Thursday also signaled that any weakening in labor market demand may have stalled. Claims for jobless benefits totaled 215,000 for the week ended May 18, down 8,000 from the previous period's upwardly revised level, according to the Labor Department. Economists surveyed by Dow Jones had been looking for 220,000.

Minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee released Wednesday pointed to uncertainty from policymakers about when it would be time to ease.

— CNBC's Jeff Cox contributed to this article.

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