US Job Growth Surges in September, Raising Odds of More Fed Rate Hikes

US payroll growth in September far exceeded economist estimates, signaling the economy remains resilient despite Fed tightening.

Higher US employment raised expectations of further Fed rate hikes, sending Treasury yields sharply higher across maturities.

Longer-dated Treasury yields jumped but pulled back from daily highs; 30-yr yield rose to 16-year high before paring increase.

Markets continue to expect a Fed rate hike pause in November but see 50% chance of another 0.25% increase in December.

The bond selloff is seen as negative for markets and the economy longer-term as higher rates threaten to slow growth.