Treasury Yields Soar on Strong Payrolls as Gold Repatriations Spark Interest

Financial markets are shifting focus to Treasury yields following strong US payrolls. The jobs report showed an unexpected increase of 162,000 jobs in August, surpassing expectations of just 56,000.

The strong jobs numbers have lifted attention to Treasury yields, with the next key event being September's Treasury buybacks on the 9th. Additionally, the recent repatriation of gold from the US and Canada to the UK and Netherlands has sparked interest in gold reserves and their relationship to Treasury yields.

Support for the yen is also being eyed as a potential move to discourage Japanese selling of US Treasuries. The dollar/yen tested support around 155.20, with some analysts suggesting this level could be crucial in determining the yen's direction.