U.S. Treasury yields climb after jobs growth surges in September

Investing.com -- U.S. Treasury yields jumped on Friday after new employment data showed that job growth in the world's largest economy unexpectedly surged in September, heaping on to investor worries that the Federal Reserve may now have more headroom to lift interest rates again in 2023 and potentially leave borrowing costs elevated for a longer period of time.

By 09:18 ET (13:18 GMT), the rate-sensitive U.S. 2-year bond yield added 0.08 percentage points to 5.102%, the country's benchmark 10-year yield gained 0.12 percentage points to 4.839%, and the longer-dated 30-Year yield climbed by 0.13 percentage points to 5.019%. Yields typically rise as prices fall.

Nonfarm payrolls increased by 336,000 last month, the Labor Department said in its closely-monitored jobs report, well above the 170,000 estimated by economists. Data for August was revised to show 227,000 were added instead of the previous reading of 187,000.

Average hourly earnings grew by 0.2% month-on-month, in line with August and below projections of 0.3%. The unemployment rate was unchanged at 3.8%, just faster than expectations of 3.7%.

U.S. bond yields have been in focus this week as they approached 16-year highs after a series of economic data points suggested a resilient, yet gradually cooling, labor market. The spike in jobs growth last month has likely bolstered bets that the Fed will possibly roll out one more rate hike this year in order to quell worker demand and corral inflationary pressures.