Treasury yields down slightly ahead of key nonfarm payrolls, jobless data

Treasury yields were slightly lower on Friday morning as traders anticipated the release of key labor market data, due later in the day.

Yields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — were off 1 basis point at 4.66%.

Shorter- and longer-dated yields were also unmoved. The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, slipped 1.4 basis points to 4.231%. The 30-year Treasury yield, which typically reacts to broader geopolitical developments, was unchanged at 5.209%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

Traders are awaiting the release of key labor market data for closer insights into the U.S. economic picture and the potential impact on the Federal Reserve's interest rate decisions, as energy prices ticked higher Friday.

Economists expect July's nonfarm payrolls data to show an increase of 83,000 jobs for the month, while the unemployment rate is forecast to hold steady at 4.2%.

Dan Lacalle, chief economist at Tressis, said Fed rate hikes would be a negative for the economy, hurting the jobs market in particular.

"It makes no sense for the Fed to hike rates," Tressis told CNBC's "Squawk Box Europe" Friday. He said there is "no sign" of overheating in the U.S. economy, adding that core CPI and PCE data indicate that rate rises would have no impact on energy prices.

West Texas Intermediate futures were last seen up 0.67% at $77.81, while Brent crude rose almost 1% to $83.31.