10/06/2023
U.S. stocks turned higher in midday trading Friday, with all three major stock indexes up more than 1 per cent. Investors shook off the impact of climbing U.S. bond yields. U.S. non-farm payrolls data in September far exceeded expectations, reinforcing the case for the Federal Reserve to raise interest rates this year and maintain high interest rate policy for a long time, pushing the 10-year and 30-year U.S. bond yields to record multi-year highs.
Previously many market participants were expecting a slightly weaker jobs report in order to break the wild ride in US Treasury yields. But strong September non-farm payrolls data show that the U.S. labour market is still tight, reinforcing the Federal Reserve to raise interest rates again this year, and in a longer period of time to maintain high interest rate policy is expected to promote Friday's U.S. Treasury yields continue to rise.