09.11.202602:46:08UTC+00US 10-Year Yield Rises on Strong Jobs Data

The yield on the US 10-year Treasury note climbed to around 4.88% on Monday, rising for a second straight session after stronger-than-expected employment data bolstered expectations of a Federal Reserve rate hike in December. Nonfarm payrolls increased by 165,000, more than double the consensus forecast of 65,000, while the unemployment rate inched down to 4.1%, highlighting the continued strength of the US labor market. Following the report, markets moved to price in roughly an 81% probability of a December rate increase, up from about 71% beforehand. Investors are now focused on this week’s key US inflation data for further guidance on the Fed’s policy outlook, with the CPI report due Tuesday and the PPI release scheduled for Friday. At the same time, demand for safe-haven Treasuries softened as global equity markets rebounded from the recent AI-driven selloff, which had been triggered by concerns over tighter regulation of the AI industry after the Democrats’ decisive victory in the US midterm elections.