US employment surged in September, suggesting the labour market remains strong and robust. The persistent strength of the labour market gives the Fed ammunition to raise interest rates once again.
Nonfarm payrolls increased 336,000 last month, the highest since January. The unemployment rate held at 3.8%, and wages rose at a modest pace.
The surprise saw treasuries fall, extending the selloff. The selloff has rapidly pushed up yields, hitting 16 year highs. Markets priced in a hike by year-end, while the S&P 500 opened lower and the dollar strengthened.