May JOLTS report shows job openings hitting a two-year high, lifting yields ahead of key June payrolls data.
U.S. Treasury yields climbed overnight as investors parsed stronger-than-expected labor market data, with May’s JOLTS report revealing job openings at a two-year high. The rise defied expectations for a downward revision after April’s surge, signaling persistent tightness in the labor market.
The jump in yields precedes this week’s ADP private-sector jobs report and Friday’s June nonfarm payrolls data, both critical for Federal Reserve policy expectations. Markets are weighing whether the resilience in hiring will delay anticipated rate cuts, with Fed Chair Jerome Powell’s remarks at the ECB forum in focus.
Traders are also bracing for second-quarter earnings season, which could further shape risk sentiment amid elevated bond yields and shifting monetary policy bets.