Core Viewpoint - US Treasury bonds experienced a decline on Thursday, influenced by better-than-expected employment data and rising oil prices, with traders focusing on upcoming non-farm payroll data and a Supreme Court ruling on tariffs [1][4]. Group 1: Market Performance - Treasury yields rose by 1.5 to 4 basis points, with the mid-curve leading the increase, and the 2-year/5-year and 2-year/10-year yield spreads steepening by 1.5 basis points [1][4]. - The 10-year Treasury yield closed at approximately 4.18%, up 3 basis points, nearing its intraday high [2][5]. Group 2: Economic Indicators - The decline in Treasury prices was primarily due to robust readings from the Challenger job cuts data and weekly initial jobless claims [1][5]. - WTI crude oil prices increased by over 4%, contributing to upward pressure on yields [2][5]. Group 3: Trading Activity - Active trading was noted in both Treasury bonds and SOFR options ahead of the employment report, with significant demand for a 1-day option betting on a larger bond market rebound [2][5]. - There was strong demand for the 97.50 call option on the 1-year curve maturing in September 2026 during the afternoon trading session [2][5]. Group 4: Yield Rates - As of 3:15 PM Eastern Time, the following yields were reported: 2-year at 3.4881%, 5-year at 3.7359%, 10-year at 4.181%, and 30-year at 4.8569% [3][6]. - The yield spread between the 5-year and 30-year bonds was 111.93 basis points, while the spread between the 2-year and 10-year bonds was 69.27 basis points [3][6].