September Jobs Report Disappoints with Slowest Growth in Months

The US labor market showed signs of weakness in September, as nonfarm payrolls rose by only 29,000 jobs, far below the expected 84,000. This was a significant disappointment for economists surveyed by Dow Jones, who had been looking for a job growth rate of 90,000.

The unemployment rate also increased to 4.2%, from 4.1% in August, and remained above expectations. The Bureau of Labor Statistics reported that the number of unemployed people rose to 7.1 million.

In response to the weak jobs report, investors initially flocked to US Treasury bonds, causing yields on the 10-year note to fall by 8 basis points to 5.155%. However, this rally was short-lived, and yields began to rise again as the day progressed.