Bond Brief: Yields Hit Multiyear Highs

"We don't think we really learned much [from yesterday's FOMC statement] that was new, and continue to believe that fed funds are going to 5% in May," says Ader.

"The statement continued to note inflation expectations remain contained and we saw the Fed spent more time talking about oil, and now other commodities, having only a modest effect on core inflation ... it sounds like the end game is nigh," he says.

Thursday's revised GDP number will provide the first release of fourth-quarter corporate profits. Fourth-quarter GDP is expected to have grown by 1.6%, while the chain deflator number is forecast to have grown by 3.3%.

The initial jobless claims number will be closely watched for signs of a tightening labor market. Wall Street is looking for claims to have held steady at 305,000 on the week.

In its policy statement, the Fed said that it will be closely watching tightening utilization and labor numbers for signs of inflation. And economists at the Federal Reserve came out with a report Wednesday that said the drop in the U.S. jobless rate is a correct signal that the labor market is tightening.

"The unemployment rate is providing a reasonably accurate picture of the state of the labor market,'' according to an analysis by five Fed economists released ahead of a presentation at the Brookings Institution tomorrow.