The U.S. economy added 138,000 jobs in May, well below the consensus number of 185,000. Nevertheless, the unemployment rate decreased to 4.3 percent from 4.4 percent.
The report comes amid hopes that the U.S. economy will accelerate after an anemic first quarter that saw GDP increase just 1.2 percent. President Donald Trump has promised his pro-growth agenda will ignite an economy that has shown steady but slow growth since the end of the Great Recession.
Luke Hickmore, senior fixed income investment manager at Aberdeen Asset Management, said the report "raises more questions than it answers. Are we in the beginning of a slowdown?"
"The big question is what happens with fiscal stimulus and Trump," Hickmore added. "The [Federal Reserve's] normalization path is dependent on how much stimulus we get moving forward."
Yields have pulled back from where they began the year as questions about what fiscal stimulus from the White House would look like. In a Thursday speech, Trump said a Republican tax-reform bill that "is moving along in Congress," though Congress is not yet considering a tax plan.
—CNBC"s Patti Domm, Jeff Cox and Fred Imbert contributed to this report.