US Treasuries declined Friday following an unexpected surge in US job growth, lifting Federal Reserve rate-hike expectations. The 10-year yield rose four basis points to 4.87%, while two-year notes climbed seven basis points to 4.54%. Non-farm payrolls added 165,000 jobs in October, exceeding a forecast of 65,000, and the unemployment rate dipped to 4.1%.
Wage growth accelerated to 3.1% over the past year. Markets priced in a 70% probability of a quarter-point rate hike next month, with expectations of at least 40 basis points of additional tightening by September 2027. Revisions to prior months were positive, reinforcing the strength of the labor market.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing