US Treasury yields fell sharply across the curve as traders recalibrated their interest-rate outlook following an unexpectedly weak July employment report.
The labor market data prompted a rapid unwinding of bets for additional Federal Reserve rate hikes, driving demand for short-term government debt.
747%, its highest level since January 2025, the latest jobs data provided a counterweight to previous strength driven by corporate earnings and persistent price pressures.
Short-term Treasuries posted their largest weekly rally since May, reflecting a swift shift in market sentiment toward a more dovish policy path.
The repricing underscores the market's sensitivity to labor market softness amid ongoing inflation concerns.
While the benchmark 10-year Treasury yield had recently surged to 4.747%, its highest level since January 2025, the latest jobs data provided a counterweight to previous strength driven by corporate earnings and persistent price pressures.
The divergence between long-end yields, which remain elevated, and short-end yields, which are falling on rate-cut expectations, highlights a steepening curve dynamic.