FX.co ★ US 10-Year Yield Rises Ahead of April Jobs Report

The yield on the 10-year U.S. Treasury note surpassed 4.23% on Friday, marking its second successive day of increases. Investors are keenly anticipating the April jobs report to gain insights into how changing trade dynamics are affecting the broader economy. Thursday's ISM manufacturing report intensified concerns, revealing that factory activity contracted at its fastest pace in five months, with output experiencing its most significant decline since 2020 due to weakening demand. This added to a series of disappointing data, including a contraction in first-quarter GDP and a rise in weekly jobless claims to 241,000, the highest since February, signaling potential issues in the labor market. On the international trade front, China has announced it is considering trade discussions with the U.S. after repeated overtures from Washington. Meanwhile, President Donald Trump voiced optimism about potential trade agreements with India, Japan, and South Korea, and reiterated his confidence in reaching a deal with China.