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Treasury yields edged lower on Friday as investors focused on how the latest non-farm payrolls data and unemployment rate, due later, could shape interest rates and inflation projections in the U.S.
The 10-year U.S. Treasury note yield — the key benchmark for mortgage borrowing, auto loans and credit card debt — was 1 basis point lower at 4.4630%.
The 2-year Treasury note yield, which is typically more sensitive to short-term Federal Reserve interest rate decisions, was more than 1 basis points lower at 4.0348%.
The longer-dated 30-year Treasury bond yield, which moves in line with broader geopolitical risks, was last seen holding steady, at 4.9695%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
The dip in bond yields, which follows Thursday’s downward move, comes ahead of key labor data releases later this morning from the Bureau of Labor Statistics.
U.S. non-farm payrolls data is forecast to show an increase of 85,000 jobs in May, marking a dip from the 115,000 job increases in April. Meanwhile, May’s unemployment rate is expected to remain unchanged from April, standing at 4.3%.
Thanos Papasavvas, founder and CIO, ABP Invest, said that the economy has been resilient overall, highlighting strong recent PMI prints, particularly in services.
Speaking with CNBC’s “Squawk Box Europe” on Friday, Papasavvas said that even if unemployment was to edge higher than the 4.3% rate widely expected, he maintains a positive outlook for the U.S. economy.
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