Treasury Yields Fall Sharply After Weak Jobs Report

2026-08-07 12:57 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note fell sharply by 7 basis points to 4.6% on Friday after a weaker-than-expected jobs report scaled back bets on Fed rate hikes.

Nonfarm payrolls unexpectedly declined by 23,000 last month, while figures for May and June were also revised sharply lower by a combined 103,000.

Meanwhile, the unemployment rate fell to 4.1% from 4.2%, suggesting the labor market is facing renewed challenges after showing surprising strength earlier this year.

The odds of a Fed rate hike in September fell to 42%, from 58% yesterday, while expectations for rate increases by December declined to 28 basis points from 32 basis points earlier.

On Thursday, a Financial Times report said Fed Chair Warsh is set to stick with the central bank’s lean messaging despite the market backlash.

Still, he would be prepared to raise rates in September if inflation readings released in the coming weeks come in hot, the FT reported.



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