10-Year Treasury Note yields shot higher following a stronger-than-expected U.S. jobs report, breaking back north of 4.5% to close the week. This milestone represents only the 3rd weekly close above that level in the past 1 year. While oil prices and geopolitical developments in the Middle East had previously driven market behavior, the robust employment data fundamentally shifted the narrative. Market participants are now pricing in the potential for central bank rate hikes in the 4th quarter of this year, a sharp reversal from recent expectations of rate cuts or prolonged pauses. Volatility also tracked higher alongside the surge in yields. Looking to next week, the economic calendar features crucial inflation reports via the upcoming CPI and PPI data, alongside 3-Year, 10-Year, and 30-Year Treasury auctions, while Federal Reserve officials enter a speaker blackout phase ahead of the June FOMC meeting.
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