Investors look forward to key economic reports

Investors awaited key economic data ahead of US Treasury earnings on Thursday and assessed the interest rate outlook after the release of the Federal Reserve’s latest meeting minutes.

At 4 a.m. ET, the 10-year Treasury yield was trading at 3.9654% after rising about two basis points. The 2-year Treasury was last up two basis points at 4.9722%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

Investors awaited key data points on Thursday and Friday that could provide new insights into the state of the economy, particularly the labor market. ADP’s employment report, JOLTs job openings and weekly initial jobless claims figures are expected on Thursday, with the June jobs report due out on Friday.

Federal Reserve Chairman Jerome Powell said last week that continued strength in the labor market was one of the main drivers of the Fed’s stance that more restrictions are needed to cool the economy.

Therefore, the data can inform the central bank’s next interest rate policy moves, particularly the pace at which rates are increased. Powell said last week that he could not rule out the possibility of raising rates at successive meetings.

It marked a change in tone from his previous comments, which suggested a slower pace of rate increases, according to minutes released Wednesday that his fellow policymakers also held at their last meeting.

Although the central bank left rates unchanged in June, the minutes reiterated that most officials expect further rate hikes.