U.S. 10 - year Treasury yields rise ahead of key jobs data


Aug 6 - U.S. 10-year Treasury yields were set on Friday for their first weekly rise in six weeks, ahead of important jobs data that could determine the timing of when the Federal Reserve opts to start unwinding stimulus.

Expansion was pushed higher by U.S. Federal Reserve Vice Chair Richard Clarida, who suggested on Wednesday that conditions for hiking interest rats might be met as soon as late 2022, earlier than market expectations.

They rose further after Thursday's data showing a fall in initial unemployment benefits claims and as traders waited July non-farm payrolls figures due at 1230 GMT.

Payroll data, due later today and again next month, will shape Fed expectations for September, BlueBay Asset Management told clients.

Broadly speaking, we feel that the outlook is in pretty good shape. Job openings remain elevated and there is growing evidence of employers struggling to fill empty roles. This increases the risk that we will start to move wage data in the months ahead.

This week, the 10-year yield, the world's most significant interest rate, is down 3 basis points after five straight weeks of falling that had driven yields 30 basis points lower.

On Friday, it was up 4 basis points to 1.26% ahead of U.S. non-farm payrolls data which is expected to show a further increase in employment in July. The 30 year yield rose similarly to 1.90%.

It was inflation-adjusted real yields that led this week's selloff after lead the bond rally in July. The 10 year Treasury inflation protected securities yield rose 11 basis points to break a six-week losing streak.

It was also up 4 bps on Friday to - 1.066%, far off a record low of -1.20% in Wednesday.

While payrolls are expected to increase, the wide range of estimates and mixed messages from ADP data and Institute for Supply Management surveys underscores market uncertainty in gauging the data.