bond yields rose slightly on friday ahead of the official us jobs data investors were waiting for the us nonfarm payrolls report to provide more clues to the future trajectory of federal reserve rate hikes as it battles with high inflation the fed wishes to see signs of a cooling jobs market before it considers easing monetary policy economists expect a net 200000 positions were created in december down from 263000 the month before the unemployment rate is forecast to stay at 37 and average hourly earnings are expected to have grown 04 down from 06 markets are pricing in a 551 probability that the fed will raise interest rates by another 25 basis points to a range of 450 to 475 after its meeting on february 1st according to the cme fedwatch tool the chance of a 50 basis point increase which a few weeks ago was priced at less than 30 is now 449 a move up that reflects some persistently hawkish rhetoric from fed officials of late minutes of the fed’s december policy meeting released on wednesday showed all participants dismissing the idea that the central bank might start cutting borrowing costs later in the year and the fed’s hawkish stance was this week also backed by the international monetary fund the central bank is expected to take its fed funds rate target to 504 by june 2023 according to 30day fed funds futures other us economic updates set for release on friday include the ism services index for december and factory orders for november due at 10 am fed speakers throughout the day include atlanta fed president raphael bostic at 1115 am fed gov lisa cook at the same time richmond fed president tom barkin at 1215 pm and kansas city fed president esther george at 1 pm there was better news on price pressures from europe where data showed eurozone inflation falling to a fourmonth low of 92 as energy prices cooled german 10year bund yields tmbmkde10y  the bloc’s benchmark dipped a fraction of a basis point to 2316 what are analysts saying “recent data…shows that us private companies added more jobs than expected in december that gives the federal reserve more room to continue hiking interest rates and another strong reading from the upcoming jobs report will likely send further jitters through the market” said sophie lundyates analyst at hargreaves lansdown “for now the federal reserve seems intent on continuing to hike rates but the market appears to be expecting one if not two cuts in the later part of this year any data that suggests inflation is going to be tougher to bring down has the ability to send fresh shockwaves…because of the apparent disconnect between current economic policy and market expectations” she added