The broader market was lower Thursday with Fed hike concerns and higher rates weighing.
Weekly initial jobless claims remained low, falling unexpectedly to 190K.
Q4 unit labor costs shot up to a rate of 3.2%. The forecast was for a decline to 1.6% from 2%.
"More evidence that the road to 2% #inflation will be long and bumpy," Schwab fixed income strategist Kathy Jones tweeted.
The 10-year yield (US10Y) rose 8 basis points to 4.08%, topping 4% yesterday for the first time since November. The 2-year yield (US2Y) rose 4 basis points to 4.93%, hitting a new post-2007 high yesterday.
The stubbornly strong labor market amid a jump in labor costs will embolden FOMC hawks. Markets are pricing in a 30% chance of a 50 basis point hike at the next meeting. Fed governor Chris Waller speaks this afternoon.
See the stocks making the biggest moves this morning.