Traders work on the floor of the New York Stock Exchange (NYSE) on March 02, 2026 in New York City. <\/p>\n
Spencer Platt | Getty Images News | Getty Images<\/p>\n
Treasury yields pushed higher Friday as investors looked at the likely inflation impact resulting from higher crude oil prices stemming from the war in the Middle East, and downplayed the surprise decline in February payrolls. <\/p>\n
The benchmark\u00a010-year Treasury<\/a>\u00a0yield gained more than 3 basis points to 4.177%. The\u00a030-year Treasury<\/a>\u00a0yield rose 2.6 basis points to 4.777%. The 2-year Treasury<\/a>\u00a0yield was almost 1 basis point higher, at 3.606%. <\/p>\n The spread between 2-year and the 10-year Treasury widened to 57.1 basis points, which might reflect higher expectations of future inflation. <\/p>\n One basis point is equal to 0.01%, and yields and prices move in opposite directions.<\/p>\n The move higher in Treasury yields came after global oil benchmark Brent crude broke above $90 a barrel on Day 7 of the Iran war, with U.S. West Texas Intermediate topping $87 a barrel, as President Trump demanded an unconditional surrender<\/a> from the Islamic Republic.<\/p>\n “Obviously the higher energy price is going to push up headline CPI inflation mechanically,” Atakan Bakiskan, chief U.S. economist at Berenberg, told CNBC’s “Squawk Box Europe<\/a>” on Friday.<\/p>\n The average price for a gallon of regular gasoline in the U.S. jumped\u00a0nearly 27\u00a0cents since in the week to Thursday, to\u00a0$3.25, according to data from travel organization AAA.<\/p>\n Fixed income investors looked past a surprise decline in February payrolls, with U.S. employers unexpectedly shedding 92,000 jobs <\/a>in February, and the unemployment rate rising to 4.4%. Economists polled by Dow Jones has expected the Bureau of Labor Statistics would say 50,000 jobs were added to the economy last month, and unemployment would be unchanged at 4.3%. <\/p>\n “Today’s numbers may have put the Fed between a rock and a hard place,” wrote Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Significant weakening in the labor market would support a rate cut, but given the risk that higher-for-longer oil prices could trigger another inflation surge, the Fed may feel compelled remain on the sidelines.”<\/p>\n San Francisco Federal Reserve Mary Daly said on CNBC’s Squawk Box<\/a> Friday that one month’s jobs data won’t decide the course of Fed policy and that she would prefer to look at the two-month average<\/a> of January \u2014 when the economy added a downwardly revised 126,000 new jobs \u2014 and February combined. <\/p>\n