Treasury yields rise slightly as investors eye jobs report

Treasury yields rose on Friday as investors awaited the release of key U.S. jobs data that could influence the Federal Reserve’s hawkish stance on monetary policy.

The yield on the benchmark 10-year Treasury note climbed 1 basis point to 1.838%. The yield on the 30-year Treasury note gained 1 basis point to reach 2.157%. Yields move inversely to prices and 1 basis point equals 0.01%.

Along with unemployment rate numbers and average hourly wage data, the highly anticipated nonfarm payrolls report is set to be released at 8:30 a.m. ET. Economists expect 150,000 jobs to have been added in January.

Ahead of the report, investors digested weekly jobless claims that came in slightly lower than expected as companies sought to weather the impact of the omicron variant Covid-19.

Claims for the week ended Jan. 29 totaled 238,000, slightly less than the 245,000 estimated by Dow Jones, the Labor Department reported Thursday.

The Federal Reserve indicated last month that it may soon raise interest rates for the first time in more than three years. The Fed’s policymaking group said a quarter-percentage-point hike in its benchmark short-term borrowing rate is likely.

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The expected decision comes at a time when central banks around the world are facing turbulent financial markets and lingering inflationary pressures.

The European Central Bank conceded on Thursday that inflation is likely to stay high longer than expected, but kept interest rates unchanged. Meanwhile, the Bank of England imposed consecutive rate hikes for the first time since 2004 and began the process of quantitative tightening.

No Treasury auction is scheduled for Friday.

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