Jan 10, 2025
Jobs report fuels Treasury yield surge as markets brace for 5% threshold
A recent surge in U.S. Treasury yields may gain even more momentum after a strong jobs report reinforced expectations that interest rates will stay high for longer and raised the spectre of benchmark 10-year yields hitting 5% — a level that some fear could rattle broader markets. Friday’s jobs report revealed that employers added 256,000 jobs in December, well above economists’ forecasts, while the unemployment rate dropped, bolstering market expectations that the Federal Reserve will maintain elevated interest rates to curb economic overheating. That news dashed investors' hopes for some respite from a sharp rise in Treasury yields that has wobbled stocks since the beginning of the year.