US treasury yields are treading higher as a sharp drop in the jobless claims to lowest since 19673 overshadowed a slower rise in inflation. At the time of writing, 10-yr US treasury yield was up more than 3 basis points at 1.795%. A brief drop to 1.78% happened after official data showed CPI rose just 0.1% m/m in March as opposed to an expected rise of 0.2%. However, initial jobless claims fell by 13K last week to 253K, which is the lowest since 1973. Consequently, yields resumed the uptrend and clocked a high of 1.804%. The 2-yr yield, which mimics short-term rate hike bets, also trades more than 2 basis points higher at 0.774%. For more information, read our latest forex news.