The yield on U.S. Treasury bonds increased before the release of the crucial employment data.
On Friday morning, U.S. Treasury yields slightly increased in anticipation of the upcoming nonfarm payrolls data for March.
The yield on the 10-year Treasury note was trading up less than one basis point at 4.318% at 4:02 a.m. ET. This follows the benchmark note reaching a new high for the year of 4.429% on Wednesday.
The yield was marginally higher at 4.648%, with yields and prices moving in opposite directions. One basis point equals 0.01%.
The nonfarm payrolls data is due on Friday at 8:30 a.m. ET, and economists predict that jobs will have grown by 200,000 in March, according to a Dow Jones poll. However, separate data released on Thursday showed that weekly initial jobless claims reached their highest level since January last week, surpassing expectations.
The Federal Reserve's decision to cut interest rates will be influenced by the job figures.
The central bank expects three rate cuts by the end of the year, but Minneapolis Fed President Neel Kashkari has questioned whether there will be any rate cuts if inflation remains high.
In an interview with Pensions & Investments, he stated that if inflation remains stable, it would make him reconsider the need for rate cuts. He also expressed his admiration for the economy's strength.
According to the CME Fed WatchTool, traders anticipate that the Fed will not alter interest rates at its May 1 meeting, and they predict a 59.5% chance of a rate reduction at its June meeting, which is a substantial decrease from previous expectations.
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