US treasury bond prices down on Friday, Yields on 10-year, 30-year, 2-year jump. Check latest rates

US yield on the 10-year Treasury rose to 4.86 per cent from 4.84 per cent late Thursday. It had topped 5.30 per cent last month when worries about inflation, higher interest rates and rising government debt were spiking. US 30-year yields edged up 1 bp to 5.262 per cent after sliding in earlier trading to its lowest level since early September. The yield has fallen for five straight weeks. On the front end of the curve, the 2-year yield, which reflects interest rate expectations, climbed 4.7 bps to 4.524 per cent, but closed out the week with its sixth weekly decline in yield.

US Treasuries fell on Friday, pushing yields higher, after the world's largest economy created far more jobs than expected last month, bolstering expectations the Federal Reserve will raise interest rates at the December policy meeting.

When bond prices fall, yields rise. Despite Friday's jump, yields have steadily moved lower in recent weeks. For the week, the 10-year yield posted its fifth straight decline.


Why Did Yields Jump on Friday?

The rise in yields came after nonfarm payrolls jumped by 165,000 last month, following an upwardly revised 60,000 gain for September, the US Labor Department said. Economists polled by Reuters had forecast payrolls advancing 65,000 after a previously reported 29,000 increase in September.

Helping to support yields was a report released Friday morning showing US employers hired many more workers last month than economists expected. It's the latest signal that the US economy continues to chug along despite high inflation.

On one hand, the encouraging data could mean the US economy may be able to absorb a slowdown in construction of AI data centres. But at the same time, the strong growth in jobs could push upward on inflation. Following the report, traders saw a greater probability of the Federal Reserve hiking its short-term interest rate at its next meeting in December, according to data from CME Group.

Rate hikes by the Fed can rein in inflation, but they do so by making borrowing money more expensive for everyone and slowing the overall economy.

A separate report, meanwhile, suggested that sentiment among US consumers unexpectedly improved. The preliminary report from the University of Michigan said sentiment rose for lower- and middle-wealth Americans but fell for those with the largest stock portfolios.

Perhaps more importantly for the bond market, the survey also suggested expectations for inflation in the coming year eased for Americans. That could prevent a vicious cycle where expectations for high inflation drive behaviour that only worsens inflation.