Treasury yields and stocks rise after another strong jobs report

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Treasury yields rose on Friday, and the stock market was in the black after the latest employment report came in better than expected. After three straight days of declines, the yield on three-year Treasurys was up 0.19% to 3.64%.

After three straight days of declines, the yield on three-year Treasurys was up 0.19% to 3.64%. The yield on the 10-year Treasury also rose by nearly 0.1% to 3.45% in the hours after the Bureau of Labor Statistics report was released.In fact, yields on every single Treasury, no matter how long the maturity, were up on Friday afternoon except for the ultra-short-term one-month Treasurys. The increases are tied to the robust jobs report.

The economy once again blew past expectations in April and notched 253,000 jobs, a sign that the labor market is holding up despite the Federal Reserve's rate-hiking campaign and turmoil in the banking sector. The unemployment rate also ticked down to an ultra-low 3.4%. Regional banking stocks also improved on Friday, which came after Thursday’s bloodbath. PacWest Bancorp’s stock plummeted more than 50% on Thursday alone, and First Horizon Bank’s stock dropped precipitously as well. Zions Bancorp, Comerica Bank, and Valley National Bancorp also suffered losses.

The country’s regional banks have been under close scrutiny since the collapse of Silicon Valley Bank in early March.

 

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