US Treasury yields surged on Friday, driven by hotter-than-expected job data and investor relief over the economy’s strong performance. The 10-year yield jumped more than 11 basis points to 4.506%, while the 2-year yield rose over 11 basis points to 4.041%. The 30-year bond yield advanced over 8 basis points to 4.966%.
The May jobs data revealed a rise of 139,000 nonfarm payrolls, beating economists’ expectations of 125,000. The unemployment rate remained steady at 4.2%. These figures have sparked hopes that companies may reassess their hiring outlooks amid the ongoing tariff policy debate.
The stronger-than-expected reading has led to speculation about the Federal Reserve’s interest rate decision in June. Fed funds futures suggest a nearly 100% chance of maintaining current borrowing rates, according to the CME FedWatch tool. Goldman Sachs’ head of multi-sector fixed income investing, Lindsay Rosner, believes the Fed will maintain its patient approach, given their focus on managing inflation risks.
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Source: https://www.cnbc.com/2025/06/06/10-year-treasury-yield-may-jobs-data.html