U.S. Treasury yields edged lower on Friday as market participants digested recent economic data, including an encouraging jobs report that lifted market sentiment.
As of 6:18 a.m. ET, the 10-year Treasury yield had fallen about 4 basis points to 3.961%, holding close to the previous week’s figures. These levels were influenced by a disappointing U.S. jobs report, which had earlier sparked a wave of volatility in global markets.
The yield on the 2-year Treasury note was little changed at 4.034%.
It is important to note that Treasury yields and corresponding prices have an inverse relationship, and a basis point is defined as 0.01% of a percentage point.
Recent data from the Labor Department showed that initial jobless claims for the past week totaled 233,000, below expectations.
The positive news pushed the S&P 500 Index to its biggest daily gain since 2022, also boosting financial markets in the Asia-Pacific region and Europe.
Investor expectations for a September rate cut by the Federal Reserve have moderated. Analysis from CME’s FedWatch tool suggests that the probability of a 50 basis point cut has diminished, with a 25 basis point cut now looking equally likely.
Further updates on economic indicators are expected next Tuesday with the publication of the producer price index.