U.S. Treasury yields moved higher on Friday following the release of stronger-than-expected jobs data, easing fears of a looming slowdown in the U.S. economy.
The 10-year yield jumped 7 basis points to 4.468%, while the 2-year yield advanced 9 basis points to 4.009%. The 30-year bond yield gained 5 basis points, reaching 4.933%. In bond markets, yields move inversely to prices.
Nonfarm payrolls rose by 139,000 in May, surpassing economists' estimate of 130,000. Meanwhile, the unemployment rate remained steady at 4.2%.
Stronger-than-anticipated jobs rise and stable unemployment underline the resilience of the U.S. labour market despite uncertainty stemming from U.S. President Trump's trade policies, supporting the case for the Federal Reserve to maintain its current policy stance - interest rates have remained unchanged since December 2024.
Against this backdrop, money markets reinforced bets on the Fed holding its rates steady once again in June and reduced bets on the U.S. central bank resuming rate cuts in September.