Finance

The 10-year U.S. Treasury yield advanced to approximately 5.31%, continuing to hover near its highest levels since 2007. Despite a weak nonfarm payrolls report indicating a slowing labor market, the bond market remains stubbornly weak as elevated real yields, heavy government borrowing, and capital competition maintain pressure on long-term rates.

The Department of Labor reported that nonfarm payrolls increased by a meager 29,000 in September, falling drastically short of the consensus expectation of 79,000. In response to the cooling employment landscape, the market dramatically adjusted its expectations, with the probability of a Federal Reserve interest rate hike in October plunging toward the 18% to 24% range from roughly 70% just a week prior.

International crude benchmarks relented during the session, with Brent crude futures declining over 1.4% to settle around $100.76 per barrel. Market pressure eased after European nations agreed to release roughly 100 million barrels of diesel and Middle East crude exports registered an uptick, mitigating some geopolitical disruption fears.