Wallstreetcn Analysis: U.S. September non-farm payrolls surprisingly increased by only 29,000, yet the 10-year U.S. Treasury yield still rebounded over 10 basis points to 5.30%, as the market worries about sustained high interest rates.

U.S. Department of Labor data on Friday showed non-farm payrolls increased by only 29,000 in September, significantly below the expected 90,000, and August's figures were also revised downward. This data lowered short-term interest rate hike expectations, with the two-year U.S. Treasury yield falling 10 basis points in a single day to 4.69%. The CME Group FedWatch tool showed the probability of an October rate hike dropping from 22% to 17%.

However, the 10-year U.S. Treasury yield quickly rebounded after briefly dipping to a daily low of 5.16%, testing 5.30% by midday, nearing Thursday's high of 5.34%, the highest since 2002. It rose approximately 12 basis points for the week, climbing for the fifth consecutive week. Wallstreetcn.com analysis pointed out that the divergence in short-term and long-term yields indicates that the market's true anxiety has shifted from the next rate hike to how long the high-interest-rate environment will persist, as inflation, fiscal supply, and term premium continue to firmly support long-term yields. Analysts believe that in a 5% interest rate environment, cracks have appeared in areas such as real estate and consumer credit, and global bond market pressure is also spreading, with the spread between French and German 10-year government bond yields reaching its widest level since the 2012 European debt crisis.