Traders take a moment to process the strong jobs data before Treasury yields resume.

Early Friday, U.S. Treasury yields remained mostly unchanged as traders considered the impact of the increase in weekly jobless claims on interest rates.

The 10-year Treasury yield slipped less than a basis point to trade around 4.445% at 5 a.m. ET, while the 2-year Treasury yield was marginally higher at 4.811%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

The Treasury Department's $25 billion auction of 30-year bonds on Thursday came under pressure due to strong demand.

The interest rate trajectory of the Federal Reserve is now the focal point for traders after relief at the auction outcome.

The number of weekly initial jobless claims, released on Thursday, reached its highest level since August 2023, at 231,000. This has been seen as a sign that the U.S.'s strong labor market may be slowing down, and has increased the likelihood that the Fed will reduce interest rates this year.

According to Deutsche Bank strategists, led by Henry Allen, Treasuries outperformed on Thursday after the jobless claims data increased the likelihood of rate cuts this year.

The upcoming U.S. inflation numbers for April will be the next hurdle, but investors have already shifted their expectations towards a more dovish stance of monetary policy than they initially anticipated at the end of April, according to a note written on Friday.

The Bank of England kept interest rates steady on Thursday, but increased the likelihood of a reduction in June.

The consumer sentiment data for May will be released on Friday, and economists anticipate a slight decrease from 77.2 to 76.

Lorie Logan, Neel Kashkari, Austan Goolsbee, and Fed Governor Michelle Bowman are among the host of Fed presidents scheduled to speak.