USD in focus: Long-end Treasury yields near multi-decade highs despite soft NFP

The source reports no currency price move, pip figure or technical levels. Its focus is the US bond market, where long-end Treasury yields are pushing toward multi-decade highs and threatening to break higher again this week, even as bets on further Federal Reserve hikes fade. The rise follows last Friday's softer US jobs report, which would normally ease pressure on rates. Non-farm payrolls rose by just 29k, well below expectations of around 90k. The unemployment rate ticked up to 4.2%, and wage growth also cooled. The bond market initially reacted as expected to the weaker data, but long-end yields have since resumed their climb. For USD traders, this creates mixed signals. Softer labour data and reduced Fed hike expectations would typically weigh on the dollar. Persistently elevated long-end yields, however, may continue to offer support. Bond market moves remain a key variable to monitor for dollar direction.