Will strong US March jobs data push Treasury yields higher again?

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Strong US March jobs data is adding upward pressure to Treasury yields again
Yes. US employers added 431,000 jobs in March and the unemployment rate fell to 3.6%, and that strong payroll growth helped push Treasury yields higher again after they had retreated earlier in the week. Two-year Treasury yields jumped to 2.4503% from 2.284%, and the benchmark 10-year US Treasury yield rose to 2.3767% from 2.325%.
March payroll strength reinforced expectations for Fed tightening
The US data showed continued strong hiring, with the labour market described as “little different” from pre-Covid levels. With economic growth robust and inflation running at three times the Federal Reserve’s 2% target, investors have been widely expecting interest rate rises this year. Rick Rieder of BlackRock said the solid payroll growth checked the box for the Fed’s inflation-fighting drive.
Yields spiked as the yield curve inverted for the third time this week
Treasury yields spiked again after previously retreating earlier in the week due to portfolio adjustments boosting bond demand. The closely watched yield curve inverted once more for the third time that week, which happens when shorter-dated yields rise above longer-dated ones. In this episode, the two-year yield moved above the 10-year yield again as both rose.
Specific yield moves showed the upward direction
The two-year Treasury yield increased to 2.4503% from 2.284%, surpassing the benchmark 10-year yield. The 10-year US Treasury yield rose to 2.3767% from 2.325%. This combination reflected a renewed rise in parts of the curve tied to expectations about near-term policy rates.
Market backdrop included rate-hike expectations into the June meeting
Rieder also indicated the Fed could reach at least policy neutrality and likely deliver at least one and possibly two 50-basis-point rate hikes by the June meeting, with even an inter-meeting hike possible. Those expectations aligned with the broader view that government bond yields are likely to trend higher due to inflationary pressures and central bank responses.

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Will strong US March jobs data push Treasury yields higher again?

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