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Treasury yields inch higher as investors monitor jobs report

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Treasury yields rose on Friday as investors awaited the release of key U.S. jobs data that could influence the Federal Reserve’s hawkish stance on monetary policy.

The yield on the benchmark 10-year Treasury note climbed 1 basis point to 1.838%. The yield on the 30-year Treasury bond added 1 basis point to reach 2.157%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Alongside unemployment rate figures and average hourly wages data, the highly anticipated non-farm payrolls report is scheduled to be released at 8:30 a.m. ET. Economists expect that 150,000 jobs will have been added in January.

Ahead of the report, investors digested weekly jobless claims that came in slightly fewer than expected as companies looked to overcome the impact of the omicron Covid-19 variant.

Claims for the week ended Jan. 29 totaled 238,000, a touch lower than the 245,000 Dow Jones estimated, the Labor Department reported Thursday.

The Federal Reserve indicated last month that it could soon raise interest rates for the first time in more than three years. The Fed’s policymaking group said a quarter-percentage-point increase to its benchmark short-term borrowing rate is likely forthcoming.

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The projected move comes at a time when central banks around the world are facing turbulent financial markets and persistent inflationary pressures.

The European Central Bank on Thursday conceded that inflation was likely to remain elevated for longer than previously expected but kept interest rates unchanged. Meanwhile, the Bank of England imposed back-to-back rate hikes for the first time since 2004 and kickstarted the process of quantitative tightening.

There are no Treasury auctions scheduled to be held on Friday.

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