06.11.202613:44:32UTC+00Treasury Yields Soar After NFP

The yield on the US 10-year Treasury note rose 6 bps to 4.9% on Friday, rebounding from nearly two-month lows reached earlier in the session, after a stronger-than-expected jobs report increased expectations of a Fed rate hike next month. The US economy added 165K jobs in October, far exceeding the consensus forecast of 65K. At the same time, the unemployment rate declined to 4.1% and wage growth beat estimates, underscoring the resilience of the labour market and its ability to withstand higher borrowing costs as the Fed works to contain inflationary pressures.

US equities were also on track to recover from the sharp losses posted in the previous session, reducing demand for safe-haven assets and contributing to the pullback in Treasury prices. Investors have been reassessing the potential economic implications of the Democrats’ sweep in the midterm elections, including the likelihood of smaller tax cuts and more restrained government spending, as well as the prospect of tighter AI regulation that could dampen investment in the sector.