July jobs miss drags down yields as Fed rate-hike bets fade

U.S. payrolls fell 23,000 in July, with the unemployment rate easing to 4.1% and labor force participation at 61.4%, signaling a softer labor market that complicates the Fed’s path. Treasury yields declined across the curve (10-year around 4.621%, 2-year around 4.176%, 30-year around 5.189%), and traders pared back rate-hike expectations for September (about 44%), while October odds stood near 58%.