Fri Aug 01 12:40:00 UTC 2025: ## Weak Jobs Report Sends Treasury Yields Tumbling Amid Tariff Concerns

**New York, NY -** U.S. Treasury yields experienced a significant drop on Friday following the release of a surprisingly weak July jobs report. Investors are now reassessing the likelihood of a Federal Reserve interest rate cut at its September meeting, while also factoring in the potential impact of President Trump’s newly imposed tariffs on economic growth.

The 2-year Treasury yield plummeted over 17 basis points to 3.776%. The 10-year Treasury note yield fell more than 9 basis points to 4.267%, and the 30-year bond yield declined 5.4 basis points to 4.833%. Bond prices, which move inversely to yields, surged following the release of the labor market data.

“Bond prices exploded higher on the all-important jobs report, as the door to a Fed rate cut in September just got opened a crack wider,” said Chris Rupkey, chief economist at FWDBONDS. “The labor market looks in much worse shape than we thought… The labor market is not rolling over, but it is badly wounded and may yet bring about a reversal in the U.S. economy’s fortunes.”

The Bureau of Labor Statistics reported that nonfarm payrolls increased by only 73,000 in July, significantly below the 100,000 growth economists had anticipated. The unemployment rate rose to 4.2%, as expected. Furthermore, the figures for May and June were significantly revised downward, raising further concerns about the health of the labor market. The June total fell to 14,000 from the previously reported 147,000, while May’s figure was revised down to 19,000 from 144,000.

Adding to the economic uncertainty, President Trump unveiled a new set of tariffs, ranging from 10% to 41%, just hours before a self-imposed deadline to lift a pause on reciprocal tariffs. While the tariffs are set to take effect on August 7th, Trump indicated in a phone interview with NBC News that he remains open to negotiations, though suggested it might be too late to avoid the upcoming tariffs.

The combined impact of the weak jobs report and the potential economic disruption caused by the new tariffs have led investors to seek the safety of U.S. Treasury bonds, driving prices up and yields down. The market is now keenly awaiting the Federal Reserve’s next move in response to these developing economic headwinds.

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