Treasury yields edge lower as investors look ahead to key inflation report

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U.S. Treasury yields were lower on Thursday as investors awaited more labor market data and looked ahead to the key inflation report.

At 5:35 a.m. ET, the 10-year Treasury yield was down 1 basis point to 4.171%, and the 30-year Treasury yield was also down 1 basis point to 4.799%. The 2-year Treasury note yield was less than a basis point lower at 3.505%.

One basis point equals 0.01%, and yields move inversely to prices.

Investors are still weighing the January nonfarm payrolls report, which showed job growth of 130,000 last month, coming in above Dow Jones’ economists’ expectations of 55,000, and much higher than December. The unemployment rate moved lower to 4.3% from 4.4%.

The report came as a relief to investors, as concerns about the labor market were mounting, with recent data showing slower growth.

The consumer price index will be a key focus for investors on Friday as they seek more clarity on price pressures.

“It’s going to put a lot of weight on Friday’s CPI report, because if that comes in tame, at least the market can understand that the inflation part of the Fed’s equation is cooling,” Fundstrat Global Advisors head of research Tom Lee told CNBC’s “Closing Bell” on Wednesday.

“And of course, now, if the job market is showing decent strength, it kind of relieves us from a macro perspective, because at least we’re not seeing an economic downturn,” Lee added.

Investors will also be awaiting more labor market data on Thursday, with the weekly initial jobless claims due and existing home sales at 10 a.m. ET.

— Sarah Min contributed to this report