Treasury yields climbed on Friday following the release of the latest employment figures, which exceeded economists’ expectations. The robust job growth prompted investors to adjust their outlook on the Federal Reserve’s monetary policy.

Market Reaction

The yield on the benchmark 10-year Treasury note rose to 2.04%, while the 2-year Treasury yield increased to 1.88%. The 30-year Treasury bond yield also saw an uptick, reaching 2.57%.

Key Factors

• Employment Data: The U.S. economy added 224,000 jobs in June, surpassing the consensus forecast of 160,000.
• Federal Reserve Policy: The strong employment data may reduce the likelihood of aggressive interest rate cuts by the Federal Reserve in the near term.
• Investor Sentiment: Investors are now weighing the possibility of a more gradual easing of monetary policy, leading to adjustments in their bond holdings.

Analysts suggest that the market will continue to monitor economic data and Federal Reserve communications for further clues about the future path of interest rates.