After the October payrolls report fails to meet expectations, Treasury yields plummet.

On Friday, the U.S. Treasury yields retreated due to unexpectedly lower key employment data.

The benchmark Treasury yield has fallen by more than 13 basis points to 4.841%, while the yield was down by 9 basis points to 4.577%. Throughout the week, the yield has come off recent highs that saw it trade above the 5% mark.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

While economists predicted a payroll increase of 170,000 in October, nonfarm payrolls only increased by 150,000. Additionally, the unemployment rate rose to 3.9%, higher than the anticipated 3.8%.

Economists predicted that hourly earnings would increase by 0.3% month over month, but the actual increase was only 0.2%.

Earlier this week, ADP reported that private sector payrolls increased by 113,000 in October, although this was lower than anticipated.

The Federal Reserve's monetary policy approach of hiking interest rates may be effective if data suggests an easing of the jobs market, as investors are looking for such indications.

The Fed did not increase interest rates during its meeting on Tuesday and Wednesday this week, marking the second consecutive meeting without a rate hike. This has led investors to believe that the central bank may be finished with its rate-hiking cycle that started in early 2022.

Fed Chairman Jerome Powell did not leave the option for further rate hikes on the table in his remarks during a press conference following the meeting.