FX.co ★ 10-Year Treasury Yield Rises After Strong Jobs Report

The yield on the 10-year U.S. Treasury note climbed to over 4.27% on Friday, following unexpectedly robust non-farm payroll figures for April. The economy saw an increase of 177,000 jobs, surpassing the anticipated 130,000 and aligning with March’s adjusted lower rise of 185,000. The unemployment rate held steady at 4.2%, as projected, while wage growth showed a slight deceleration. This data arrives shortly after Wednesday's indication that the U.S. economy experienced a contraction in the first quarter, primarily due to a spike in imports. Furthermore, additional data highlighted a significant rise in weekly jobless claims and a contraction within the manufacturing sector. These mixed economic indicators present a challenge for the Federal Reserve as it deliberates on whether to reduce interest rates in June. On the international trade stage, China has announced its consideration of trade negotiations with the U.S., following persistent overtures from Washington.