After a turbulent week, U.S. Treasury yields were subdued on Friday as investors await a key U.S. employment report for guidance on the Fed's rate path. The 10-year yield was little changed at 4.76%, up about 5bps over the past five sessions. Early-week gains — driven by a spike in energy prices and hawkish remarks from Fed chair KEVIN WARSH — pushed the benchmark to a three-year high; prices later rebounded and yields eased after Fed governor WALLER on Thursday suggested inflation may moderate.

After a turbulent week, U.S. Treasury yields were subdued on Friday as investors await a key U.S. employment report for guidance on the Fed's rate path. The 10-year yield was little changed at 4.76%, up about 5bps over the past five sessions. Early-week gains — driven by a spike in energy prices and hawkish remarks from Fed chair KEVIN WARSH — pushed the benchmark to a three-year high; prices later rebounded and yields eased after Fed governor WALLER on Thursday suggested inflation may moderate. Florian Ielpo, macro head at Lombard Odier Investment Management, said policy uncertainty is increasingly a driver of long-term bond volatility.