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Treasury yields climb after U.S. economy adds more than 1.7 million jobs in July

U.S. government debt yields rose Friday morning after the government said the U.S. economy added more than 1.7 million jobs in July, more than expected and pushing the unemployment rate back toward single digits.

The yield on the benchmark 10-year Treasury note rose to 0.549% and the yield on the 30-year Treasury bond climbed to 1.214%. Yields move inversely to prices.

U.S. yields, which had drifted lower prior to the Labor Department’s monthly jobs report, moved higher after the government said the total nonfarm payroll increased by 1.763 million for the month. The unemployment rate fell to 10.2%, also better than the estimates from economists surveyed by Dow Jones.

The consensus was for growth of 1.4 million and an unemployment rate of 10.6%. 

Average hourly earnings, sometimes watched by fixed-income investors for early signs of inflation, beat expectations for a loss and actually increased by 7 cents in July from June. 

Meanwhile, Congressional Democrats and White House representatives have yet to make substantial progress on a new coronavirus aid bill. Both sides have expressed a desire to persist with negotiations, but President Donald Trump has threatened to pull out of talks if a deal is not reached by the end of Friday.

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