Arabic version: ارتفاع عوائد سندات الخزانة بعد تقرير وظائف سبتمبر الضعيف

According to Cnbc, U.S. Treasury yields rose on Friday after initially falling in response to an unexpectedly weak September jobs report, which was seen as likely reducing the chances of a Federal Reserve rate increase in October. The benchmark 10-year Treasury yield rose nearly 5 basis points to 5.281%, after reaching its highest level since 2002 earlier in the week.

The 30-year Treasury yield added 2 basis points to 5.629%, while the policy-sensitive 2-year yield rose 5 basis points to 4.839%. A basis point equals 0.01%, and bond yields move in the opposite direction of prices. Nonfarm payrolls increased by 29,000 during the month, while the unemployment rate rose to 4.2% from 4.1%, the Bureau of Labor Statistics reported. Dow Jones economists had expected payroll growth of 84,000 and an unchanged unemployment rate. August’s jobs gain was revised down to 133,000.

Yields recovered during the trading session after their initial decline. Timothy Chubb, chief investment officer at Girard Advisory Services, said the report did not necessarily alter the Federal Reserve outlook and that the trajectory remained “higher for longer.” Traders put the probability of the Fed holding rates steady at its October meeting at 77%, according to CME Group’s FedWatch tool, while still seeing a high likelihood of a rate increase in December.

Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said the soft labor report argued against a retightening labor market. She said a December increase remained the base case, though market pressure and higher energy prices could also influence the Fed. Elsewhere, pressure on global government bonds eased, with 10-year yields down about 3 basis points across major European economies after a sharp weekly sell-off.