The 10-year Treasury yield rose on Friday on the back of a stronger-than-expected jobs report for July.
At about 4:10 pm ET, the yield on the 10-year Treasury was at 2.83%, and the yield on the 30-year Treasury bond was up 10 basis points and trading at 3.068%. Meanwhile, the 2-year was up 20 basis points to 3.242%. Yields move inversely to prices.
The data showed nonfarm payrolls increase 528,000 last month and surpassed Dow Jones' expectations of 258,000. At the same time, wage growth rose with average earnings climbing 0.5% for the month and 5.2% over last year. The stronger than anticipated report showed that the U.S. is likely not in a recession.
Friday's move marks a reversal from the recent trend, which saw the 10-year yield trending lower on fears the Fed's hiking campaign was tipping the economy into a recession. Earlier this week, the 10-year yield fell to 2.50% and its lowest since April, according to FactSet.
Investors are closely monitoring the health of the U.S. economy after recent numbers showed a second consecutive negative gross domestic product reading.
As a result, upcoming data releases related to the labor market will be highly anticipated by many money managers.
Cleveland Fed President Loretta Mester on Thursday said the Federal Reserve plans to keep raising interest rates into 2023, in another sign that the central bank does not yet see an economic recession.