Treasury Yields Climb on Supply Surge, Sliding Unemployment
- Prospect of another $108b in supply adds to burden on market
- Thirty-year yield rises to 1.45%, gap to five-year widens
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A stronger-than-anticipated August payrolls report weighed on Treasuries ahead of the U.S. Labor Day holiday weekend, driving yields higher at the long end of the curve even as stocks fell.
The biggest surprise was the steep drop in the unemployment rate, which fell by almost 2 percentage points, to 8.4%. The jobs gain of 1.37 million also exceeded economists’ forecasts. The data including the hiring of 238,000 temporary census workers, according to the Labor Department’s data report Friday.