10-year Treasury Yield Surpasses 4.53% Following Strong Jobs Report Treasury yields surged on Friday as a stronger-than-expected May jobs report reinforced the resilience of the U.S. labor market. The benchmark 10-year U.S. Treasury yield climbed more than 6 basis points to 4.538%, its highest level since May 21. The 2-year Treasury yield, which reflects expectations for Federal Reserve policy, rose over 10 basis points to 4.153%, reaching its peak since February 25, 2025. The 30-year Treasury bond yield also increased, gaining more than 2 basis points to 5.005%, indicating heightened sensitivity to geopolitical risks and broader economic uncertainty. The nonfarm payrolls report showed a significant jump in employment, with 172,000 jobs added in May—far exceeding the Dow Jones forecast of 80,000. The unemployment rate remained unchanged at 4.3%, highlighting the labor market’s continued strength despite ongoing economic challenges. The leisure and hospitality sector led job gains, adding 70,000 positions, which was more than five times the average monthly growth of 14,000 in the previous year. This sector’s performance underscored the uneven distribution of job creation, with most growth concentrated in specific industries while broader hiring remained subdued. The report defied expectations of a gradual slowdown in the labor market, as hiring has remained limited across much of the economy. While job growth has been concentrated in a handful of sectors, layoffs have largely been contained. The data also highlighted the persistence of a strong labor market, which has raised questions about the timing of potential Federal Reserve rate cuts.#nonfarm_payrolls #federal_reserve #treasury_yield #christopher_rupkey #fwd_bonds
