U.S. 10-year Treasury briefly climbs above 1.6% ahead of key jobs report

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  • Investors will be eyeing Friday’s nonfarm payrolls report at 8:30 a.m. ET.
  • The figures for September represent a key indicator for the Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program.

U.S. Treasury yields rose above 1.6% on Friday, as investors awaited a key employment report for clues on the direction of Federal Reserve monetary policy.

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The yield on the benchmark 10-year Treasury note rose to 1.601% early Friday, before slipping slightly to 1.598% at 5.20 a.m. ET. The yield on the 30-year Treasury bond also climbed to around 2.157%, before ticking slightly lower. Yields move inversely to prices.

On the data front, investors are expected to closely monitor Friday’s nonfarm payrolls report at 8:30 a.m. ET. The figures for September represent a key indicator for the Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program.

Economists polled by Dow Jones expect nonfarm payrolls data to show that the U.S. economy added 500,000 jobs in September. This follows a big miss in August when just 235,000 jobs were added against a consensus forecast of 720,000.

Unemployment rate figures and average hourly wages data for September are both scheduled to be published at the same time.

Wholesale trade inventories data for August are expected to be released at 10:00 a.m. ET.

Elsewhere, Federal Reserve Bank of Dallas President Robert Kaplan is due to retire on Friday, succeeded on an interim basis by the first vice president at the Dallas Fed, Meredith Black.

Kaplan announced his retirement last week, stepping down following recent controversy over stock market trades he made.

There are no auctions scheduled to be held on Friday.

— CNBC’s Elliot Smith contributed to this report.

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