US Treasury yields surged on Friday as traders welcomed the release of April’s nonfarm payrolls data, which beat expectations with a seasonally adjusted increase of 177,000 jobs. This news alleviated concerns about the impact of President Trump’s higher tariffs on the economy.
The benchmark 10-year Treasury note yield rose over 7 basis points to 4.308%, while the 2-year Treasury yield jumped more than 12 basis points to 3.828%. Yields and prices are inversely related, meaning a rise in yields typically indicates lower prices.
Market analysts now expect interest rates to remain unchanged at the Federal Reserve’s upcoming meeting on May 6-7. The unemployment rate held steady at 4.2%, indicating a stable labor market. Investors have also taken heart from China’s announcement that it is evaluating the possibility of starting trade talks with the US, after senior officials reached out to discuss tariff negotiations.
“We were nervous about seeing some job growth pick up in this print, but it didn’t happen,” said Rhys Williams, chief investment officer at Wayve Capital. “Employment looks strong through April.”
Source: https://www.cnbc.com/2025/05/02/us-treasury-yields-china-signals-possible-trade-talks-with-us.html