Arabic version: ارتفاع عوائد سندات الخزانة بعد تقرير قوي للوظائف في أغسطس
According to Cnbc, Treasury yields rose Friday after a stronger-than-expected U.S. jobs report for August prompted investors to reassess expectations for Federal Reserve interest-rate decisions. The 10-year Treasury note yield, a benchmark for mortgages, auto loans and credit-card debt, was up less than 4 basis points at 4.802%.
The 2-year Treasury note yield, which typically responds to short-term Federal Reserve rate expectations, climbed more than 7 basis points to 4.425%, its highest level since January 2025. The 30-year Treasury note yield was little changed at 5.263%. A basis point equals 0.01%, and bond yields move inversely to prices.
The U.S. economy added 162,000 jobs in August, exceeding economists’ consensus estimate of 53,000, based on a Dow Jones poll. The report came as annual price growth remains above the Federal Reserve’s 2% target. A strong labor market and sticky inflation could give the central bank more room to raise rates at its Sept. 15-16 meeting.
Traders raised their bets on a quarter-percentage-point Fed increase at that meeting. The probability rose to 58%, about 9 percentage points above the previous day, according to the CME Group’s FedWatch tool. Chris Rupkey, chief economist at FWDBONDS, said the report showed hiring was “surprisingly robust” despite high energy prices and an affordability crisis, while warning that the Fed could view demand as sufficiently hot to require a rate increase.
Investors are now awaiting fresh inflation data due next week for further signals before the Fed’s decision. Vice President JD Vance on Thursday called for the Fed to cut rates to make homes more affordable. Treasury yields had declined in Thursday’s session, when the 10-year yield fell more than 2 basis points and the 30-year yield dropped more than 1 basis point.
