Treasury Yields Below Recent Highs, Jobs Data Awaited

The yield on the US 10-year Treasury was around 4.34% on Friday, remaining below four-month highs of 4.4% touched early in the week, as traders brace for the key jobs report due later in the day to adjust their bets for the timing of the first interest rate cut by the Fed.

The odds for an ease in monetary policy in June currently stand around 65%.

Early in the week, Fed Chair reinforced that it will likely be appropriate to begin lowering the policy rate at some point this year although policymakers need greater confidence that inflation is moving sustainably down toward 2%.

Despite mixed economic data, the US economy continues to show strength with a slight cooling in the labor market.