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Treasury yields eased in early trade Friday, with investors awaiting the latest nonfarm payrolls and unemployment data, due later, as the U.S.. inflation and interest rate backdrop comes under closer scrutiny following recent bond market jitters.
The key 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was unchanged at 4.7541%.
The shorter-dated 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was also holding steady at 4.3390%.
The longer-dated 30-year Treasury note yield, which is often sensitive to geopolitical events, was also holding firm at 5.2328%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Traders are closely watching August’s big nonfarm payrolls report and unemployment print — both due at 8:30 a.m. E.T.
Economists polled by Reuters expect an increase of 56,000 jobs for the month, following a surprise 23,000 dip in July. Meanwhile, unemployment is forecast to hold steady at 4.2%.
Friday’s release comes on the heels of a lower-than-expected ADP print Wednesday, which showed private U.S. companies added 38,000 workers in August, lagging expectations of 47,000.
With rising bond yields and renewed inflation risks in sharp focus in recent days, investors also have one eye on a raft of fresh inflation data, due out next week, as markets look for signals into the Federal Reserve‘s latest interest rate decision on September 15-16.
Vice President JD Vance on Thursday called on the Fed to cut interest rates to make homes more affordable.
Bond yields receded during Thursday’s session, with the 10-year Treasury note yields sliding more than 2 basis points and the 30-year Treasury note yield dropping more than 1 basis point.
