U.S. Treasury yields rose on Friday as investors digested a hot April jobs report and what it means for the economy and Federal Reserve's rate hiking campaign.
The yield on the 10-year Treasury was last up almost 9 basis points to 3.439%. The 2-year Treasury jumped more than 18 basis points to 3.914%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
The surge in yields came as data from the Bureau of Labor Statistics showed stronger-than-expected jobs growth in April even as markets grappled with the banking fallout.
The U.S. added 253,000 nonfarm payrolls in April, surpassing the 180,000 expected by Wall Street. The unemployment rate came in at 3.4%, below an estimate of 3.6%.
A strong job market will make it less likely for the Federal Reserve to halt its aggressive tightening campaign, a policy shift that many on Wall Street had been hoping for.
The volatility in the regional banking sector in the equity market is also impacting yields, according to Gregory Faranello of AmeriVet Securities.
"The market's fearful that this situation is going to evolve and ultimately hit the real economy. I think, if we didn't have these event coming into the marketplace, in terms of the financial system, rates would probably be a lot higher than where they are now," Faranello said.
Elsewhere, investors continued weighing what could be next for Federal Reserve policy. The central bank had announced a further 25 basis point interest rate hike on Wednesday and indicated that rate increases may be paused imminently.
Despite Fed Chairman Jerome Powell suggesting that it was too early to cut rates, investors considered whether the central bank would have to do so later in the year as recession fears spread. Powell also reiterated that any further policy decisions would be data-dependent.