Treasury Yields Soar After NFP
The yield on the US 10-year Treasury note jumped 6bps to 4.9% on Friday, rebounding from nearly two-month lows touched earlier in the session, after a stronger-than-expected jobs report boosted expectations of a Fed rate hike next month. The US economy added 165K jobs in October, well above forecasts of 65K. In addition, the unemployment rate fell to 4.1% and wage growth exceeded expectations, pointing to a resilient labour market capable of withstanding higher borrowing costs as the Fed seeks to contain inflationary pressures. Meanwhile, US stocks were on track to rebound from the sharp losses recorded in the previous session, easing demand for safe-haven assets and contributing to the reversal in Treasury prices. Investors have been reassessing the potential economic implications of the Democrats' sweep in the midterm elections, including the prospect of lower tax cuts and government spending, alongside potentially tighter AI regulation that could weigh on investment in the sector.
The yield on the US 10-year Treasury note jumped 6bps to 4.9% on Friday, rebounding from nearly two-month lows touched earlier in the session, after a stronger-than-expected jobs report boosted expectations of a Fed rate hike next month. The US economy added 165K jobs in October, well above forecasts of 65K. In addition, the unemployment rate fell to 4.1% and wage growth exceeded expectations, pointing to a resilient labour market capable of withstanding higher borrowing costs as the Fed seeks to contain inflationary pressures.
Meanwhile, US stocks were on track to rebound from the sharp losses recorded in the previous session, easing demand for safe-haven assets and contributing to the reversal in Treasury prices. Investors have been reassessing the potential economic implications of the Democrats' sweep in the midterm elections, including the prospect of lower tax cuts and government spending, alongside potentially tighter AI regulation that could weigh on investment in the sector.