Apr 10, 2023 - Economy & Business

Treasury yields rise on nearly perfect jobs report

Data: FactSet; Chart: Axios Visuals

Investors are betting that the Fed will keep raising interest rates after jobs data in March showed the economy could very well be on track for a "soft landing."

Driving the news: Yields on short-term Treasury notes, heavily influenced by expectations for what the central bank will do with monetary policy, shot higher after the data was released Friday.

  • The yield on the two-year Treasury rose roughly 0.15 percentage points, another in a string of sizable swings in what's typically a muted market.

Context: With the stock market closed for Good Friday, the bond market was perhaps the main venue for investors to express views on what the report meant. (And it was only open until 12 pm ET in New York.)

The bottom line: Investors in recent weeks had been cutting back on bets that the Fed would keep hiking rates in aftermath of last month's banking panic.

  • But Friday's surge in short-term yields suggests that more are convinced that the economy's strong enough for the Fed to keep on keeping on.
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