Treasury yields rose on Thursday, influenced by investor anticipation of the upcoming nonfarm payrolls report. The 10-year yield increased by 3 basis points to 4.402%, while the 2-year yield jumped over 5 basis points to 3.93%. In contrast, the 30-year long bond yield remained unchanged at 4.888%.
The yield movements were largely driven by market expectations of a 125,000 job increase in May’s nonfarm payrolls report, according to economists polled by Dow Jones. However, initial weekly unemployment claims data for May showed a higher-than-expected 247,000 first-time filings.
Wednesday’s disappointing US data, including the services sector activity and private sector payroll numbers, further heightened concerns about a weakening labor market. Nevertheless, experts do not believe these reports pose an immediate threat of recession.
“We’re approaching an inflection point where stagflation concerns may become more prominent in the market narrative,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. The upcoming jobs report will provide crucial insight into the labor market and its implications for inflation and economic policy.
Meanwhile, optimism about trade deal progress between the US and China boosted investor confidence after a phone call between President Donald Trump and Chinese President Xi Jinping. The leaders agreed on further trade talks with US and Chinese officials.
Source: https://www.cnbc.com/2025/06/05/us-treasury-yields-april-trade-data-initial-jobless-claims.html