U.S. government bond prices rose, nudging yields lower, on Friday ahead of a key report on employment that could offer a gauge of the health of the labor market and inflation.
A rise in Treasury yields also follows an escalation of a tit-for-tat tariff dispute between China and the U.S. that took a more substantial turn earlier in the day.
The 2-year note yield TMUBMUSD02Y, -0.63% edged 0.4 basis point lower to 2.547%, a day after the largest one-day yield climb since June 13. The 10-year Treasury note yield TMUBMUSD10Y, -0.48% slipped by 0.8 basis point to 2.832%. The rate for the 30-year bond TMUBMUSD30Y, -0.55% traded 0.3 basis point lower at 2.950%.
Yields fall as bond prices rise.
Friday’s main focus will be the jobs report due at 8:30 a.m. Eastern Time, with consensus estimates from economists polled by MarketWatch expecting 200,000 jobs to be added in June, with unemployment holding steady at 3.8% and average hourly earnings rising by 0.3%, a metric that has been closely followed as investors watch for signs of rising inflation.
On Thursday, a day after markets were closed in observance of the Fourth of July break, bond investors digested minutes from the Federal Reserve’s most recent policy meeting ended June 13.
The minutes showed that although the U.S. central bank acknowledged the potential for trade disputes to hurt economic growth it didn’t deem those concerns sufficient to prevent continuing its path of normalizing interest-rate policy—a message that helped to reverse the late-afternoon course for yields, pushing them slightly higher.
Meanwhile, President Donald Trump’s administration imposed tariffs on $34 billion of 25% on Chinese imports at midnight Eastern Time on Friday, with Beijing firing back with tariffs on the same value in American goods, as promised.
The levies on trade between the two largest