Breakfast Briefing | 8 June 2026 | US Payrolls Surprise Pushes Yields Higher

US non-farm payrolls delivered a 172,000 jobs gain in May, more than double the 82,000 expected, but the composition tells a more nuanced story. Hospitality added 70,000, local government 55,000, and healthcare 35,000, while manufacturing, IT and construction were flat to lower. Lower-paid jobs rose, higher-paid roles shrank.Combined with the ongoing closure of the Strait of Hormuz and oil holding above USD 90/bbl, markets have shifted to a risk-off stance, pricing in earlier Federal Reserve rate hikes to pre-empt embedded inflation. The US 10-year Treasury yield climbed to 4.54%, up 11 bps for the week.Canada also surprised, adding 88,000 jobs against expectations of 10,000, with unemployment falling to 6.6%. That may give the Bank of Canada cover to raise rates at its decision later this week.Elsewhere, China's foreign exchange reserves reached USD 3.44 trillion, the highest since October 2015, and India's Q1 growth came in at 7.8%, ahead of the 7.2% forecast. In contrast, Ireland's economy contracted more than 12% in Q1, dragging the EU's overall GDP lower, driven by a 27% slump in its multinational-dominated sectors.For Australian borrowers, the upward drift in global yields is the key signal. The Australian 10-year bond yield sits at 4.91%, up 6 bps for the week.Read the full Briefing: https://www.interest.com.au/economy/702/chinas-reserves-11-year-high-india-growth-stays-strong-us-payrolls-rise-not-productive#BreakfastBriefing #RBA #InterestRates #AustralianEconomy #interestcomau #USFed #BondYields #GlobalMarkets #Inflation #MonetaryPolicy