U.S. Treasury yields were little changed on Friday as investors awaited key payroll data.

At 4:15 a.m. ET, The yield on the 10-year Treasury was higher by less than one basis point to 4.1857%. Meanwhile, the 2-year Treasury yield was up more than two basis points to 4.1683%.

One basis point is equal to 0.01% and yields and prices move in opposite directions.

Investors are looking ahead to the nonfarm payroll figure which will be published on Friday by the Bureau of Labor Statistics at 8:30 a.m. ET. It’s expected to show that the U.S. economy added 214,000 jobs in November, a step up from the 12,000 jobs added in October. The October reading was the worst for job gains since December 2020.

This report is pivotal for investors as it will offer an insight into the strength of the labor market as well as shape the Federal Reserve’s rate decision at its Dec. 17-18 policy meeting.

“Well, it should be a pretty healthy number, because it should bounce back from [October] when we had [Hurricane] Milton and the [Boeing strike] holding down jobs,” said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research.

On Wednesday, the ISM manufacturing PMI data showed that the service sector was expanding but the reading came in at 52.1 last month, 3.9 points lower than October’s 56 reading.

Meanwhile, the ADP employment change report revealed that private payrolls grew less than expected, with companies adding 146,000 jobs in November, below economists’ estimation of 163,000 positions.

On Wednesday afternoon, Fed chair Jerome Powell reiterated that the central bank will proceed cautiously with rate cuts, given the strong economy.

“The labor market is better, and the downside risks appear to be less in the labor market. Growth is definitely stronger than we thought, and inflation is coming [out] a little higher. So the good news is that we can afford to be a little more cautious as we try to find neutral,” Powell said.

Correction: This story was updated to reflect the correct publication date of ISM manufacturing PMI data.