Initial claims filed last week were both 4,000 lower than the week prior and lower than economists expected.

The deal, priced on Monday, attracted as much as $85 billion of orders, or more than three times the size of the offering.

In May, the BLS's import price index rose 6.7% from a year earlier, adding further proof of the inflationary impact of the Iran war and the data center boom.

Fed officials are widely expected to hold rates steady this month, but investors expect the Fed to raise rates by the end of the year in response to higher inflation.