Hiring Surge Sends Bond Yields Even Higher
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Surging U.S. job growth shattered investors’ expectations in the latest sign of accelerating economic momentum, stoking a brisk bond market selloff that is sending longer-term borrowing rates to new 16-year highs.
Employers added 336,000 jobs in September, the strongest gain since January and up sharply from the prior month’s upwardly revised 227,000 gain, the Labor Department said Friday. Job growth was also stronger in July than previously estimated.
The report suggests the economy gained strength through the summer, fueled partly by brisk consumer spending. The jump in hiring keeps the door open to another Federal Reserve interest-rate increase this year. And it defies forecasters’ expectations for a slowdown driven by high interest rates, elevated inflation, the resumption of student loan repayments and rising oil prices.
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