U.S. nonfarm jobs in May were unexpectedly strong, sending U.S. Government Bonds yields sharply higher.
According to the electronic trading platform Tradeweb on the 5th (local time), the 10-year U.S. Treasury yield was 4.54% at about 8:40 a.m. Eastern, up 0.06 percentage points from the previous session.
At the same time, the 30-year U.S. Government Bonds yield rose 0.04 percentage points to 5.02%, breaking through the psychological resistance level of 5%. The 2-year U.S. Treasury yield, which is sensitive to monetary policy, was 4.12%, up 0.07 percentage points from the previous session.
U.S. Treasury rates climbed across the board after stronger-than-expected U.S. employment data were released. The Bureau of Labor Statistics at the Labor Department said U.S. nonfarm jobs in May increased by 172,000 from the prior month. That far exceeded the 80,000 increase projected by experts, based on a Dow Jones tally.
Despite concerns that a U.S.-Iran war could drive up energy prices and cause an economic slowdown, the U.S. job market showed resilience into May, bolstering expectations that the Federal Reserve (Fed) will be unable to cut rates this year.