U.S. Treasury yields increased on Thursday following the release of positive economic data, indicating stronger-than-anticipated growth in the services and manufacturing sectors in May. The 10-year Treasury yield rose by 4 basis points to reach 4.477%, while the 2-year Treasury yield climbed 5 basis points to 4.929%.

According to purchase manager surveys from S&P Global, both the services and manufacturing gauges exceeded expectations and showed expansion in their respective sectors. The services activity index registered a reading of 54.8 for May, while manufacturing stood at 50.9. These figures demonstrated monthly growth and surpassed predictions from Dow Jones, which had expected 51.5 and 50, respectively.

Moreover, the surveys revealed that input prices continued to rise sharply, suggesting potential inflationary pressures on the economy. However, this did not deter investors, as the robustness of the economic data provided a boost to market confidence.

Additionally, the Labor Department reported a larger-than-anticipated decrease in weekly jobless claims, indicating that any signs of weakening labor market demand may have subsided. For the week ending May 18, claims for jobless benefits totaled 215,000, marking a decrease of 8,000 from the previous period's upwardly revised level. Economists surveyed by Dow Jones had been projecting a slightly higher figure of 220,000.

The release of the minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee, which were made public on Wednesday, revealed policymakers' uncertainty regarding the appropriate timing for an easing of monetary policy. This uncertainty suggests that the Federal Reserve may adopt a cautious approach given the mixed signals in the economy.

Overall, the optimistic economic data and decline in jobless claims indicate a potential strengthening of the U.S. economy. These developments have contributed to an upward movement in Treasury yields, reflecting improved market sentiment. Investors will closely monitor future economic indicators to gauge the long-term stability of the economy and its impact on Treasury yields.