Strong US Jobs Report Boosts Bets for September Rate Hike
A strong US jobs report boosted bets on a September interest rate hike by the Federal Reserve, causing Treasury yields and the dollar to rise while stocks fell.
The nonfarm payrolls rose by 162,000 jobs last month after an upwardly revised increase of 21,000 in July. Economists polled by Reuters had forecast an increase of 56,000 after a previously reported drop of 23,000 in July. The unemployment rate held steady.
The yield on two-year Treasury notes rose to 4.37%, the highest since January 2025, while the yield on 10-year Treasury notes was up nearly 2 basis points at 4.78%.
Bret Kenwell, a US investment analyst at eToro in New York, said investors will pay close attention to next week's consumer prices report ahead of the Fed's mid-September decision.