Treasury yield jumped higher after August jobs data came in stronger than expected.
The yield on the benchmark 10-year Treasury note climbed 8 basis points to hit a high of 0.70%, while the yield on the 30-year Treasury bond also gained 8 basis points to 1.42%. Yields move inversely to prices.
The unemployment rate also fell to 8.4% from 10.2% in July, by far the lowest since the coronavirus shutdown in March. The consensus estimate was for the jobless rate to decline to 9.8%.
“It’s a strong growth reaction. Higher yields, steeper curve,” said John Briggs of NatWest. “I think a lot of it is the unemployment side of it. If you’re tightening the labor market that quickly, it should have a negative reaction in the bond market.”