Treasury yields spiked higher Friday on the back of hotter-than-expected U.S. jobs data, as investors breathed a sigh of relief that the U.S. economy remains on solid footing.
The 10-year Treasury yield added more than 11 basis points to 4.506%. The 2-year yield rose more than 11 basis points to 4.041%, while the 30-year bond yield advanced more than 8 basis points to sit at 4.966%.
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WATCH HEREOne basis point equals 0.01%. Yields and prices move inversely in the bond market.
Nonfarm payrolls rose by 139,000 jobs in May, exceeding the consensus forecast of 125,000 from economists polled by Dow Jones, according to data released Friday morning. The unemployment rate held steady at 4.2%.
This report can offer insights into how, or if, companies have changed their hiring outlooks amid the rollout of President Donald Trump's on again, off again tariff policy.
A better-than-expected reading can also provide justification for the Federal Reserve to keep interest rates, which haven't been moved since December, unchanged. Fed funds futures are pricing in about a 100% likelihood that the central bank holds the borrowing rate steady once again at its June gathering, according to the CME FedWatch tool.
"With the Fed laser-focused on managing the risks to the inflation side of its mandate, today's stronger than expected jobs report will do little to alter its patient approach," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.
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