CNBC
Treasury yields tumble after much weaker-than-expected July jobs report, Fed governor resignation
Fri, 01 Aug 2025 19:47:33 GMT
U.S. Treasury yields tumbled Friday after a far weaker-than-expected July nonfarm payroll report and a new raft of tariffs were implemented by President Donald Trump.
Yields extended their decline after Federal Reserve Governor Adriana Kugler said she is resigning, giving Trump a chance to put a nominee on the committee that sets interest rates.
The 2-year yield note yield plunged more than 28 basis points to 3.67% as traders reassessed the likelihood for a Fed rate reduction at the central bank's next meeting in September. The 10-year Treasury note yield dropped 14 basis points to 4.21% while the 30-year bond yield pulled back 7.6 basis points to 4.809%. One basis point is equal to 0.01%, and yields and prices move in opposite directions.
"Bond prices exploded higher on the all-important jobs report, as the door to a Fed rate cut in September just got opened a crack wider," said Chris Rupkey, chief economist at FWDBONDS. "The labor market looks in much worse shape than we thought. Bet on it. The labor market is not rolling over, but it is badly wounded and may yet bring about a reversal in the U.S. economy's fortunes."
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