WASHINGTON (dpa-AFX) - day on Friday but showed a significant downturn over the course of the session.
Bond prices pulled back well off their early highs and firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has climbed 4.3 basis points to 5.285 percent after hitting a low of 5.160 percent.
Treasuries initially surged in reaction to a closely watched Labor Department report showing much weaker-than-expected job growth in the month of September.
The report said non-farm payroll employment rose by 29,000 jobs in September after jumping by a downwardly revised 133,000 jobs in August, while economists had expected employment to increase by 85,000 jobs.
The Labor Department also said the unemployment rate ticked up to 4.2 percent in September from 4.1 percent in August. Economists had expected the unemployment rate to remain unchanged.
The report initially drove treasuries higher amid optimism the data will reduce the chances the Federal Reserve will once again raise interest rates later this month.
However, bond prices pulled back sharply as some economists have suggested the weaker-than-expected jobs data will not dissuade the Fed from raising rates.
'The softer than expected September employment report makes a rate hike at the October meeting a closer call,' said Nancy Vanden Houten, Lead US Economist at Oxford Economics.
She added, 'However, we think the upside risks to inflation are still a bigger concern for the Federal Reserve and expect they will raise rates at the end of the month.'
CME Group's FedWatch Tool is currently indicating a 22.7 percent chance the Fed will hike rates by another quarter point at its October 27-28 meeting.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
