Treasury yields tick lower as investors await key jobs data

Bond yields in major economies worldwide have been flirting with all-time lows in the last few days, indicating that investors are wary of an impending recession. The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 earlier this week, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus.

Market focus on Friday is largely attuned to nonfarm payrolls and unemployment data, expected at 08:30 a.m. ET on Friday. Nonfarm payrolls are predicted to have risen by 160,000 in June, compared to 75,000 in May, according to a Reuters poll.

A weaker-than-expected figure could increase bets that the Federal Reserve will cut interest rates at its meeting on July 30 and 31. The central bank opened the door to easier monetary policy last month by stating it will “act as appropriate” to maintain the current economic expansion.

Geopolitical tensions in the Middle East continue to dominate after the British Royal Marines seized a large Iranian oil tanker Thursday for trying to take oil to Syria in violation of EU sanctions, evoking fury in Tehran. Oil prices were mixed in morning trade, with the international benchmark Brent crude futures contract flat at $63.30 per barrel, while U.S crude futures slipped 1.01% to $56.76 per barrel.