Stronger-than-Expected US Employment Data Reinforces December Fed Rate Hike Expectations

US nonfarm payrolls increased by 165,000 in October, surpassing expectations, with previous months' figures also revised upwards by 84,000. The unemployment rate edged down to 4.1%. This robust employment data has strengthened market expectations for a further Federal Reserve interest rate hike in December, leading to higher US Treasury yields across the curve and a broad strengthening of the dollar.