NEW YORK — U.S. Treasury yields pulled back Thursday, with the 10-year note falling 2 basis points to 4.7680 percent as markets positioned ahead of Friday's August employment data.
The 30-year Treasury yield dropped 2 basis points to 5.2433 percent, while the 2-year note fell more than 2 basis points to 4.3609 percent. The retreat followed Wednesday's sharp sell-off that sent the 10-year to multi-year highs on persistent inflation concerns.
Friday's nonfarm payrolls report is forecast to show an increase of 58,000 jobs, with the unemployment rate expected to hold at 4.1 percent. The forecast comes after Wednesday's ADP private sector payrolls came in below expectations and July's unexpected loss of 23,000 jobs raised questions about labor market momentum.
Thursday's ISM services PMI reading—due before the jobs report—is expected at 54.3, up slightly from July's 54.1. The data will help clarify whether service-sector activity can offset recent weakness in manufacturing and employment.
Geopolitical tensions added to uncertainty. Iran launched missile and drone strikes against Kuwait, rattling oil markets. West Texas Intermediate October futures fell 0.5 percent but remained above $90 per barrel. Brent crude dropped 0.6 percent to $95.07.
President Donald Trump said he did not expect the tensions to persist.
