Treasury Yields Jump After Jobs Report

2026-06-05 12:44 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note rose about 6bps to 4.54% on Friday after a stronger-than-expected jobs report reinforced expectations that the Fed may need to raise interest rates again, with markets now almost fully pricing in a quarter-point hike by year-end.

The US economy added 172,000 jobs in May, well above forecasts of 85,000, while employment figures for March and April were revised higher.

The unemployment rate remained unchanged at 4.3%, and average hourly earnings rose 0.3% on the month, in line with expectations.

The report reinforced the view that the labour market remains resilient, with job gains appearing broadly based across sectors.

Against a backdrop of elevated inflationary pressures and inflation continuing to run above the Fed's target, the data strengthened the case for monetary tightening later this year.

Meanwhile, the 2-year Treasury yield, which is more sensitive to changes in interest rate expectations, rose by about 10bps to 4.16%.



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