(Bloomberg) — Asian equities were poised for a muted open on Friday as Treasuries stemmed a selloff ahead of US jobs data that will help shape the outlook for Federal Reserve rates.

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Futures for Australian shares rose, while those for Japan and Hong Kong were little changed. S&P 500 contracts edged lower Thursday as US trading was closed to observe a national day of mourning for former President Jimmy Carter.

Treasuries stabilized in a shortened trading session, following a rout that drove 30-year yields to the highest since 2023. The action curtailed the heavy selling since late last year that has pressured US yields higher, reflecting some uncertainty about the path ahead for US rates. An index of the dollar climbed Thursday.

The moves followed signs from Fed officials on Thursday that the central bank will slow its approach to rate cuts. Several officials confirmed that the Fed will likely hold interest rates at current levels for an extended period, only cutting again when inflation meaningfully cools.

Boston Fed President Susan Collins said Thursday a slower approach to adjusting interest rates is merited now as officials confront “considerable uncertainty” over the US economic outlook. The view was echoed by colleagues from other reserve banks and by Governor Michelle Bowman.

The muted action also reflects caution ahead of Friday’s US nonfarm payrolls data that’s expected to show a slowdown in hiring in an otherwise robust labor market. Median estimates for the figures forecast that 165,000 jobs were added to the US economy in December, as the labor market moved beyond distortions caused by hurricanes and strike activity in previous months.

“While losing momentum, we are still projecting a relatively firm increase for job gain,” said Oscar Munoz and Gennadiy Goldberg at TD Securities. “We also look for the unemployment rate to stay unchanged at 4.2%, amid a likely loss of momentum in wage growth owing to favorable seasonal factors.”

Elsewhere, the pound slipped to a more than one-year low and gilts sank on concern the UK’s Labour government will struggle to keep the deficit in check as borrowing costs surge.

In Asia, data set for release includes household spending for Australia and industrial production for India, while money supply figures for China may be released any time though January 15.

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