U.S. Treasury yields edged higher on Thursday as stronger-than-expected jobless claims data reinforced labor market resilience, potentially delaying anticipated Federal Reserve interest rate cuts. Geopolitical tensions and concerns over central bank independence added to investor caution.

The benchmark 10-year Treasury yield rose 3 basis points to 4.173%, while the 2-year yield increased 5 basis points to 3.568%. The 30-year yield remained steady at 4.799%.

Initial jobless claims for the week ending January 10 came in at 198,000, below the Dow Jones consensus estimate of 215,000. The solid labor market reading tempered expectations for early Fed easing, with market-implied odds of an April rate cut falling to 30.2% from 34.6% the previous day, according to the CME FedWatch Tool. Traders are currently pricing in only two quarter-point cuts for 2026.

Investors also monitored several geopolitical flashpoints. Tensions between the U.S. and Denmark over Greenland's status persisted after a White House meeting ended in "fundamental disagreement." Meanwhile, speculation about a potential U.S. military response to Iran's crackdown on protests has weighed on sentiment, though President Trump indicated Wednesday he might hold off, citing assurances that "the killing in Iran is stopping."

Adding to market uncertainty, the ongoing criminal investigation into Fed Chair Jerome Powell has raised questions about the central bank's independence. Global central bankers have rallied to defend Powell, emphasizing that institutional autonomy is "a cornerstone of price, financial and economic stability."

The combination of robust domestic data and unresolved international disputes is creating a complex backdrop for fixed-income markets as participants reassess the path of monetary policy.