US Treasury Yields Rise Amid Government Shutdown and Rising Layoff Concerns
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U.S. Treasury yields edged higher on Friday, November 7, 2025, as investors navigated an economic data void caused by the ongoing government shutdown. The lack of key government reports is forcing investors to rely on option data sources, which are painting a potentially weakening labour market picture.
Treasury Yield Movements
As of 5:12 a.m. ET, the 10-year treasury yield was up by more than 1 basis point to 4.108%. The 2-year note yield also increased by 1 basis point, reaching 3.576%, while the 30-year bond yield rose to 4.704%, also up 1 basis point. (Note: One basis point equals 0.01%,and yields move inversely to prices.)
Impact of the Government Shutdown
The Bureau of Labor Statistics was scheduled to release the nonfarm payrolls report on friday, but the report has been delayed for the second consecutive month due to the government shutdown. Economists surveyed by Dow Jones had anticipated a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%. The shutdown prevents the release of crucial economic indicators, increasing market uncertainty.
Rising Layoff Announcements
In the absence of official government data, investors are focusing on alternative indicators. A recent report from Challenger, Gray & Christmas revealed a significant surge in announced job cuts in October. The report indicated 153,074 job cuts, tripling September’s level and representing a 183% monthly increase. this figure is also 175% higher than the number of layoffs announced during the same period last year.
According to the Challenger survey, october 2025 saw the highest number of layoffs for that month since 2003. Furthermore,2025 is on track to be the worst year for announced layoffs since 2009. This data suggests a potential slowdown in the labor market and increasing economic headwinds.
Key Takeaways
* U.S. Treasury yields rose slightly on November 7, 2025.
* The government shutdown continues to delay the release of critical economic data, including the nonfarm payrolls report.
* Layoff announcements surged in October, according to Challenger, Gray & Christmas, signaling potential weakness in the labor market.
* Investors are relying on alternative data sources to assess the economic outlook.
Looking Ahead
The ongoing government shutdown and the concerning rise in layoff announcements create a complex environment for investors. Continued reliance on alternative data sources will likely influence market sentiment in the short term. The resolution of the government shutdown and the subsequent release of official economic data will be crucial in providing a clearer picture of the U.S. economic outlook.