10-year Treasury yield rises after much stronger-than-expected October jobs report

U.S. Treasury yields jumped as investors assessed a stronger-than-expected jobs report, which strengthened the case for another rate hike coming later this year.

The benchmark 10-year Treasury yield climbed more than 4 basis points to 4.88%. The long-dated 30-year Treasury bond rose more than 2 basis points to 5.277%. Meanwhile, the 2-year Treasury note yield jumped 6 basis points at 4.537%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

The October non-farm payrolls report showed the U.S. economy added 165,000 jobs last month, while the unemployment rate dipped to 4.1%, the Bureau of Labor Statistics reported Friday.

That's far better than the 59,000 jobs economists were anticipating, and for the unemployment rate to hold steady at 4.2%, according to Dow Jones consensus estimates. It's also a sharp improvement from September's weak jobs report that showed just 29,000 jobs added and a 4.2% unemployment rate.

Markets continued to price in another rate increase this year. Fed futures futures were pricing in a more than 76% chance of a quarter point hike coming at the Dec. 9 meeting, up from more than 66% the day prior, according to the CME FedWatch Tool.

The outcome of the U.S. midterm elections dominated markets this week after the Democrats won control of both chambers of Congress. This has sparked some concern among investors about whether there will be a potential slowdown in data center construction.

Elsewhere, investors are digesting a selloff in artificial intelligence stocks on Thursday, which saw the Nasdaq, S&P 500, and Russell 2000 log their worst session since April 2025, per FactSet data. Additionally, the "Magnificent Seven" lost more than $1 trillion in aggregate market cap during the selloff.

— CNBC's Jeff Cox and Paulina Likos contributed to this report