Dollar-Yen Holds Firm Amid Weak Jobs Data and High Yields

The US dollar-yen pair held steady at around 157 yen to the dollar despite weak U.S. jobs data, while long-term yields remained above 5%.

This week's employment report showed nonfarm payrolls increased by just 29,000, far below the consensus estimate of 90,000, but the 10-year Treasury yield briefly touched 5.34%, its highest level since 2002, roughly 24 years.

The probability of an additional rate hike at the October Federal Open Market Committee (FOMC) meeting plummeted from around 70% to 20%, yet long-term yields continued to move in ways that 'cannot be explained by the Fed's policy rate alone.'