Treasury Yields Rose On Eased Slowdown Fears After NFP

US government-bond yields rose Friday morning after fresh labuor market related data for September showed slight opportunity of any serious economic slowdown. Treasury yields spiked, with the benchmark 10-year note topping 3.8% and the rate-sensitive 2-year yield at nearly 4.3%.

The Labour Department’s latest data showed the unemployment rate dropping to 3.5% last month, falling to match the lowest level it has hit in decades. It was a reversal after August had seen joblessness tick higher.

Investors were betting that signs of a cooling labour market would force Fed policymakers to change course on their aggressive rate-hiking path, particularly after a series of weaker economic data denoting a sharp contraction in manufacturing activity and fewer job openings.

But a lot of Wall Street strategists have argued that hopes for a dovish stance have been scattered, this sort of sentiment is further reinforced by Friday’s data.