A surprise surge in US jobs data sent Treasury yields higher as traders slashed expectations for Federal Reserve rate cuts this year. The strong employment report prompted a reassessment of monetary policy outlook, with investors unwinding positions that had priced in multiple cuts.

Asian equity futures traded mixed following a flat close on Wall Street, reflecting uncertainty about the economic trajectory. The robust jobs numbers suggest the US economy may be more resilient than previously thought, potentially giving the Fed more room to maintain higher interest rates for longer.

The market reaction underscores how sensitive financial assets have become to economic data points. With inflation still above the Fed's target and labor markets showing surprising strength, traders are recalibrating their rate-cut expectations, which could keep Treasury yields elevated and create headwinds for equity markets.