U.S. Treasury yields were trading in mixed territory on Friday, as investors awaited key January jobs data which will provide fresh insights into the state of the labor market.
At 4:07 a.m. ET, the 10-year Treasury yield was down by less than one basis point to 4.436%. The 2-year Treasury yield was last at 4.2328% after rising by over two basis points.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
On Friday all eyes will be on January’s monthly jobs report, which includes nonfarm payrolls and unemployment data. Economists polled by Dow Jones are forecasting payrolls growth of 169,000 in January, down from the 256,000 jobs added in December. The unemployment rate is expected to stay unchanged at 4.1%.
While the data could signal that jobs creation is slowing, the broader view appears to be that the labor market is holding up well and will not become an issue for the Federal Reserve any time soon.
A stable employment picture will be welcomed by markets in light of the Fed likely keeping interest rates on hold for several more months as policymakers wait to see how U.S. President Donald Trump’s fiscal, economic and trade policies, including potential tariffs, shake out.
The report comes after payrolls processing firm ADP on Wednesday said that private companies created 183,000 jobs in January. This was higher than December’s revised figure of 176,000 and also exceeded expectations.
The latest consumer sentiment report will also be published on Friday. Attention will then shift from this week’s jobs data to another key data point slated for next week — the January consumer and wholesale inflation figures.