U.S. Treasury yields were little changed Thursday as investors sorted through more labor market indicators ahead of Friday’s major jobs report. .
The yield on the benchmark 10-year Treasury note was mostly flat near 1.185% shortly after 8:30 a.m. ET. The yield on the 30-year Treasury bond was steady near 1.834%. Yields move inversely to prices and one basis point equals 0.01%.
Weekly initial jobless claims came in at 385,000 on Thursday, according to the Labor Department, matching expectations.
The 10-year Treasury yield fell to its lowest point since February on Wednesday, following disappointing employment data from private payroll firm ADP. Employers added 330,000 jobs in July, well below economists’ estimate of 653,000 new positions. This was also a sharp drop on the revised 680,000 payrolls created in June.
However, the yield rebounded in intraday trading, continuing a volatile period for the benchmark bond.
“The 10-year yield bounced off the 1.13% level (which seems to be support) and clearly the 10 year can react to better-than-expected data,” Tom Essaye of Sevens Report said in a note. “Negatively, there remain aggressive buyers on Treasury dips and it’s going to take a real, impactful headline to break this negative technical momentum in bonds.”
Investors have been closely monitoring jobs data, given that the labor market recovery is being used by the Federal Reserve to gauge when it will start talking about tightening monetary policy.
The Labor Department’s official July jobs report, due out on Friday, will be the core focus for investors this week.
Fed Governor Christopher Waller is due to speak on central bank digital currency at the American Enterprise Institute at 10 a.m. ET on Thursday.
Auctions are due to be held on Thursday for $40 billion of 4-week bills and $35 billion of 8-week bills.
