August Jobs Report Points to Stable Labor Market
A strong August jobs report has sent yields higher, according to the latest data from the Labor Department's Bureau of Labor Statistics. The nonfarm payrolls surged by 162,000 jobs last month after an upwardly revised rise of 21,000 in July.
Economists polled by Reuters had forecast payrolls would increase by 56,000 after a previously reported drop of 23,000 in July. Labor market momentum had decelerated after surging in the spring, partly blamed on the oil price shock and supply chain strains from the U.S.-led war with Iran.
The unemployment rate held steady at 4.1%, pointing to a stable labor market. Short-term interest-rate futures now imply about a 59% chance of an increase in the U.S. policy rate at the Fed's September 15-16 meeting, up from about 55% before the Bureau of Labor Statistics report.
The S&P 500 was off 0.1%, and the Nasdaq composite was up 0.1%. The 2-year Treasury yield rose 5 basis points to 4.38%, while the 10-year Treasury yield rose 1 basis point to 4.776%.