2-year yield rises to highest since January 2025 after hot jobs report

… </script></div></div></div><div class="PageBuilder-containerWidth100 PageBuilder-pageRow"><div class="PageBuilder-col-full PageBuilder-col PageBuilder-article"><div id="RegularArticle-ArticleHeader-2" data-test="articleHeader-0" data-analytics="RegularArticle-articleHeader-2-0"><header class="ArticleHeader-articleHeader" id="main-article-header"><div class="ArticleHeader-headerContentContainer" data-header-content-container="true"><div class="ArticleHeader-wrapperHeroNoImage ArticleHeader-wrapperHero ArticleHeader-wrapper ArticleHeader-wrapperNoImage"><a href="https://www.cnbc.com/markets/bonds/" class="ArticleHeader-eyebrow">Bonds</a><div><h1 class="ArticleHeader-headline">2-year yield rises to highest since January 2025 after hot jobs report boosts expectations that the Fed could raise rates</h1></div><div class="ArticleHeader-timeHidden"><time data-testid="published-timestamp" dateTime="2026-09-04T08:35:45+0000" itemProp="datePublished">Published Fri, Sep 4 2026<span class="ArticleHeader-datetimeDivider"></span>4:35 AM EDT</time><span class="ArticleHeader-timestampDivider"></span><time data-testid="lastpublished-timestamp" dateTime="2026-09-04T20:12:26+0000">Updated 2 Hours Ago</time></div></div><div class="ArticleHeader-authorAndShareInline"><div class="ArticleHeader-authorContainer ArticleHeader-authorContainerWithWatchLive"><div class="ArticleHeader-author"><div class="Author-author"><div class="Author-authorInfo"><div class="Author-authorNameAndSocial"><a href="https://www.cnbc.com/davis-giangiulio/" class="Author-authorName">Davis Giangiulio<span class="Author-authorUnderline"></span></a><a href="https://linkedin.com/in/davis-giangiulio" class="Author-authorTwitter" target="_blank">@in/davis-giangiulio</a><a href="https://twitter.com/@GiangiulioDavis" class="Author-authorTwitter" target="_blank">@GiangiulioDavis</a></div></div></div></div><div class="ArticleHeader-author"><div class="ArticleHeader-authorDivider"></div><div class="Author-author"><div class="Author-authorInfo"><div class="Author-authorNameAndSocial"><a href="https://www.cnbc.com/sean-conlon/" class="Author-authorName">Sean Conlon<span class="Author-authorUnderline"></span></a><a href="https://twitter.com/@SeanAustin96" class="Author-authorTwitter" target="_blank">@SeanAustin96</a></div></div></div></div><div class="ArticleHeader-author"><div class="ArticleHeader-authorDivider"></div><div class="Author-author"><div class="Author-authorInfo"><div class="Author-authorNameAndSocial"><a href="https://www.cnbc.com/hugh-leask/" class="Author-authorName">Hugh Leask<span class="Author-authorUnderline"></span></a></div></div></div></div></div><span><a href="/live-tv/" class="WatchLive-container">WATCH LIVE</a></span></div></div></header></div></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-9 PageBuilder-col PageBuilder-article"><div class="ArticleBody-articleBody" id="RegularArticle-ArticleBody-5" data-module="ArticleBody" data-test="articleBody-2" data-analytics="RegularArticle-articleBody-5-2"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="RelatedQuotes-relatedQuotes" id="RegularArticle-RelatedQuotes"><div class="RelatedQuotes-quotesContainer"><div class="RelatedQuotes-titleAndTime undefined"><p class="RelatedQuotes-text">In this article</p></div><ul class="RelatedQuotes-list"><li class="QuoteItem-item" aria-label="Quote for null"><a href="/quotes/US10Y" class="QuoteItem-link"><span class="QuoteItem-symbol">US10Y</span></a><span class="AddToWatchlistButton-watchlistContainer" id="RegularArticle-WatchlistDropdown" data-analytics-id="RegularArticle-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></li><li class="QuoteItem-item" aria-label="Quote for null"><a href="/quotes/US2Y" class="QuoteItem-link"><span class="QuoteItem-symbol">US2Y</span></a><span class="AddToWatchlistButton-watchlistContainer" id="RegularArticle-WatchlistDropdown" data-analytics-id="RegularArticle-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></li><li class="QuoteItem-item" aria-label="Quote for null"><a href="/quotes/US30Y" class="QuoteItem-link"><span class="QuoteItem-symbol">US30Y</span></a><span class="AddToWatchlistButton-watchlistContainer" id="RegularArticle-WatchlistDropdown" data-analytics-id="RegularArticle-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></li></ul></div><div class="RelatedQuotes-cfaButtonContainer"><button id="ArticlePageTickerCreateAccountButton" class="CreateFreeAccountButton-buttonContainer"><span class="CreateFreeAccountButton-buttonText"><span>Follow your favorite stocks</span><span class="CreateFreeAccountButton-buttonTextBold">CREATE FREE ACCOUNT</span></span></button></div></div><div class="InlineImage-imageEmbed" id="ArticleBody-InlineImage-106080676" data-test="InlineImage"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div style="height:100%" class="lazyload-placeholder"></div></div><div><div class="InlineImage-imageEmbedCaption">Traders work on the floor of the New York Stock Exchange (NYSE) on August 14, 2019 in New York City.</div><div class="InlineImage-imageEmbedCredit">Spencer Platt | Getty Images</div></div></div></div><div class="group"><p>Treasury yields rose in trading Friday, as investors digested a <a href="https://www.cnbc.com/2026/09/04/jobs-report-august-2026.html">stronger-than-expected jobs report</a> for the month of August and weighed the impact it may have on the Federal Reserve&#x27;s decisions on interest rates. </p><p>The shorter-dated <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-2"><a href="/quotes/US2Y/">2-year Treasury note</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> yield, which tends to react in line with short-term Federal Reserve interest rate decisions, rose more than 4 basis points to 4.377%. It reached its highest level since January 2025 during the day.</p><div style="height:100%" class="lazyload-placeholder"></div><p>The key <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-3"><a href="/quotes/US10Y/">10-year Treasury note</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> yield — the main benchmark for mortgages, auto loans and credit card debt — was up more than 2 basis points at 4.784%.</p><p>The longer-dated <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-4"><a href="/quotes/US30Y/">30-year Treasury note</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> yield, which is often sensitive to geopolitical events, was little changed at 5.245%.</p><p>One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.</p></div><div data-test="ArticleTable"><div class="ArticleTable-tableContainer"><div data-test="MarketTable"><div class="BasicTable-basicTable" data-test="BasicTable"><div class="BasicTable-tableWrapper"><div class="BasicTable-articleContainer" style="border-color:#002f6c"><table class="BasicTable-table"><tbody class="BasicTable-tableBody"></tbody></table></div></div><div><br/></div></div></div></div></div><div class="group"><p>The U.S. economy added 162,000 jobs in August, above consensus estimates for 53,000, according to economists polled by Dow Jones. A hot labor market and sticky inflation — as price growth on an annual basis remains above the Fed&#x27;s 2% target — could give the central bank more cover to raise interest rates at its September meeting. </p><p>Traders increased their bets on a Fed rate hike at the Sept. 15-16 meeting. The probability of a quarter percentage point increase rose to 58%, or about 9 percentage points higher than a day ago, according to the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">CME Group&#x27;s FedWatch tool</a>.</p><div style="height:100%" class="lazyload-placeholder"></div><p>&quot;Fed officials have characterized the employment markets as stable but today&#x27;s stellar jobs report shows hiring is surprisingly robust given the high level of energy prices and the ongoing affordability crisis,&quot; said Chris Rupkey, chief economist at FWDBONDS. &quot;The only fear is the Fed itself if it thinks economic demand is hot enough to need a rate hike in a couple of weeks.&quot;</p><p>Investors will now have all eyes on fresh inflation data, due out next week, as markets look for the final data signals into the <a href="https://www.cnbc.com/federal-reserve/">Federal Reserve</a>&#x27;s latest interest rate decision on Sept. 15-16.</p><p>Vice President <a href="https://www.cnbc.com/jd-vance-us-vice-president/">JD Vance</a> on Thursday <a href="https://www.cnbc.com/2026/09/03/vance-fed-interest-rates-trump-bond-yields.html">called on the Fed</a> to cut <a href="https://www.cnbc.com/id/10000836">interest rates</a> to make homes more affordable.</p><p><a href="https://www.cnbc.com/2026/09/03/us-treasury-yields-bonds.html">Bond yields receded during Thursday&#x27;s session</a>, with the 10-year Treasury note yields sliding more than 2 basis points and the 30-year Treasury note yield dropping more than 1 basis point. </p></div><div id="ArticleBody-MobileAdhesion" class="MobileAdhesion-container" data-module="mps-slot"></div><div class="ArticleBody-googlePreferredSourceContainer" data-module="GooglePreferredSource" data-id="RegularArticle-GooglePreferredSource-5"><div class="ArticleBody-googlePreferredSourceBorder"></div><a href="https://www.google.com/preferences/source?q=https://www.cnbc.com/" target="_blank" rel="noopener noreferrer">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</a></div></div></div><div class="SidebarArticle-sidebar PageBuilder-sidebar" data-test="SidebarArticle"><div class="SidebarArticle-sticky" style="top:70px"><div></div><div></div><div style="margin-top:0px"></div><div><div style="height:100%" class="lazyload-placeholder"></div></div></div></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-9 PageBuilder-col PageBuilder-article"></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-12 PageBuilder-col PageBuilder-article"><div style="height:100%" class="lazyload-placeholder"></div></div></div></div></div></div></div><div id="MobileAdhesion-Homepage" class="MobileAdhesion-container" data-module="mps-slot"></div><footer id="GlobalFooter" class="CNBCFooter-footer" data-mini-video-player-dont-scroll-beyond-here="true" data-test="GlobalFooter" data-analytics="RegularArticle-GlobalFooter"><div class="CNBCFooter-wrapper"><div><a href="//www.cnbc.com" class="CNBCFooter-logo" target="_self"><img src="https://static-redesign.cnbcfm.com/dist/d6085c9e81f4d7365c8d.svg" class="CNBCFooter-logoImg CNBCFooter-versantLogo" alt="CNBC logo"/></a></div><ul class="CNBCFooter-social"><li class="CNBCFooter-socialItem"><a href="https://www.facebook.com/cnbc/" class="icon-social_facebook" target="_blank" aria-label="facebook"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.twitter.com/cnbc/" class="icon-social_twitter" target="_blank" aria-label="twitter"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.linkedin.com/company/cnbc/" class="icon-social_linkedin" target="_blank" aria-label="linkedin"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.instagram.com/cnbc/" class="icon-social_instagram" target="_blank" aria-label="instagram"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.youtube.com/user/cnbc/" class="icon-social_youtube" target="_blank" aria-label="youtube"></a></li><li class="CNBCFooter-socialItem"><a href="https://apple.news/T3OtoXcxtRkuHRkM7SpFP_Q" class="icon-social_apple_news" target="_blank" aria-label="apple_news"></a></li><li class="CNBCFooter-socialItem"><a href="/rss-feeds/" class="icon-social_rss" target="_blank" aria-label="rss"></a></li></ul><div class="CNBCFooter-border"></div><ul class="CNBCFooter-list"><li class="CNBCFooter-listItem"><a href="/application/pro/?__source=pro|globalfooter" target="_self">Subscribe to CNBC PRO</a></li><li class="CNBCFooter-listItem"><a href="/investingclub/subscribe?__source=investingclub|globalfooter" target="_self">Subscribe to Investing Club</a></li><li class="CNBCFooter-listItem"><a href="/cnbc-reprints/" target="_self">Licensing &amp; 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