us bond yields rose on thursday with the 10year rate jumping to almost 35 as investors turned their attention to fridays producerprice index for november some analysts attributed thursdays rise in yields to profittaking by bondholders ahead of fridays producerprice index report for november read treasuries yields are rising thursday bondholders are taking profitswith a relative dearth of major us macroeconomic information on thursday investors continued to contemplate the prospect of a still toostrong us economy and whether a soft landing is anywhere near achievable according to stephen innes managing partner at spi asset managementthe treasury yield curve remained deeply inverted with the spread between 2 and 10year rates shrinking to minus 82 basis points as traders factored in a slightly greater chance that the fedfunds rate target could get to 5 and higher by march fedfunds futures traders now see a 407 likelihood of such a scenario up from 374 on wednesday after factoring in a betterthannot chance of a halfpercentage point rate hike on dec 14 according to the cme fedwatch tooldata released on thursday showed that us weekly initial jobless benefit claims rose slightly to 230000 in early december pointing to what could be a slow erosion in the labor market as the us economy weakens what analysts are saying ahead of next weeks federal open market committee meeting the market is increasingly sensitive to every data point and tomorrows ppi report is a potential game changer said stifel nicolaus  co chief economist lindsey piegza the report could undermine the feds plans for a pivot to a less aggressive policy if producer price pressures fail to retreat