FX.co ★ US Treasury Yields Rise After Jobs Report

The yield on the US 10-year Treasury note climbed to 4.35% in a shortened session on Friday, extending its rebound from the two-week lows reached earlier in the week, after a stronger-than-expected jobs report. The US economy added 178K jobs in March, nearly triple the market consensus of 60K, while the unemployment rate ticked down to 4.3% and wage growth moderated.

This combination of solid hiring and easing wage pressures reinforced expectations that the Federal Reserve will leave the federal funds rate unchanged for the remainder of the year. At the same time, investors continued to monitor escalating tensions in the Middle East. US President Trump sharpened his rhetoric against Iran, threatening strikes on key infrastructure targets such as bridges and power plants, while Iran reportedly hit additional sites in Arab Gulf states.

Rising energy prices are heightening worries about a possible inflationary spiral. Trading volumes were expected to stay subdued due to the Good Friday holiday, with US equity markets closed and US bond markets operating on a shortened schedule.