US Treasury Yields Climb, Yield Curve Narrows Following Strong Jobs Report

U.S. Treasury yields, particularly the 2-year, rose sharply on Friday, September 4, with the 2-year yield hitting its highest level since January 2025. This movement, which also led to a narrowing of the gap between the 2-year and 10-year yields, is attributed to the hotter-than-expected August jobs report, boosting expectations for a Federal Reserve rate hike.