Treasury Yields Rise on Strong April Jobs Data

U.S. job growth in April exceeded expectations as employers added 177,000 jobs, keeping the unemployment rate steady at 4.2%. Treasury yields rose, with the 10-year note surpassing 4.27%, reflecting market optimism about labor market strength despite ongoing trade tensions and new tariffs. Wage growth eased and labor force participation increased, indicating underlying resilience in the economy. However, manufacturing data continued to show weakness, and jobless claims increased, while first-quarter GDP contracted, presenting a mixed economic outlook. Persistent inflation and trade uncertainties remain challenges for the Federal Reserve’s future policy decisions. Overall, the strong jobs report has helped ease immediate recession concerns even as broader economic risks persist.