September jobs report anticipation causes Treasury yields to decrease.

Early Friday, U.S. Treasury yields were slightly lower as investors prepared for the highly anticipated September jobs report.

The yield on the was 0.153% lower than the yield, which was 3.84%.

An inverse relationship exists between yields and prices, with one basis point equivalent to 0.01%.

On Thursday, Treasury yields increased after ADP data revealed that private payrolls grew more than anticipated in September. Specifically, private companies added 143,000 jobs, surpassing August's figure of 103,000 and the forecast of 128,000.

According to a survey conducted by Dow Jones, economists predict that nonfarm payrolls will increase by 150,000 in September, compared to 142,000 in August, while the unemployment rate will remain at 4.2%.

Jerome Powell, the Federal Reserve Chair, highlighted that the central bank has recently adjusted its policy stance to prioritize supporting the labor market, economy, and inflation.

The strength of the jobs data may determine whether the Fed cuts rates again in November and December and by how much, as the justification for the 50-basis-point interest rate cut last month was the strength of the jobs data.

On Monday, Powell proposed cutting rates at both meetings in smaller, 25-basis-point increments, while emphasizing that the Fed was not following a predetermined path.

According to CME's FedWatch tool, a quarter-percentage-point cut is predicted with a 67% probability, while the smaller chance of a half-percentage-point reduction is also indicated.