The US economy beat expectations by adding 256,000 jobs in December.

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The U.S. economy added 256,000 jobs in December, beating expectations and sending yields on long-term U.S. government debt through 2023.

The figure from the Bureau of Labor Statistics on Friday was better than economists’ expectations of 160,000, a Reuters estimate, and more than a downward revision from the 212,000 jobs added in November.

Treasury yields rose as investors played that. Federal Reserve It will be slow to cut interest rates this year. Futures markets pushed back expectations for the first quarter-point pace since June before the data was released. This year, the chance of a second cut has dropped to 20 percent from roughly 60 percent.

The two-year Treasury yield, which tracks interest rate expectations and carries over to bond prices, rose 0.11 percentage points to 4.37 percent. The 10-year yield rose 0.09 percentage points to 4.77 percent — the highest level since November 2023.

Stock futures fell, with contracts tracking the S&P 500 down 0.8 percent. The dollar rose 0.4 percent against six other currencies.

“This number underlines that the Fed does not need to rush. . . It pretty much confirms that they’ve been held for a few months,” said Eric Winograd, chief economist at AllianceBernstein.

He added that the bond market was already “on edge”.

Friday Works The hotly anticipated data on both sides of the Atlantic amid a selloff in government bond markets, fueled in part by expectations that the Fed will cut interest rates slightly in 2025.

Britain’s chancellor Rachel Reeves has been on the rise. Pressure Government borrowing costs rose sharply this week, leaving her with little room to meet her self-imposed fiscal commitments.

UK bond yields rose after the US jobs figures were published. The 10-year gilt yield rose to 4.88 percent, up 0.07 percentage points on the day, but below the 16-year high of 4.93 percent hit earlier this week.

US President-elect Donald Trump’s plans to cut taxes, impose tariffs and limit immigration also signaled that the Fed will be more cautious in 2025.

The central bank’s forecast in December was for just a two-quarter-point drop this year, compared to a forecast in September, partly due to continued strength in the labor market.

Jeff Schmidt, a senior federal official; He said on Thursday The U.S. central bank said it was “very close” to meeting its targets on inflation and employment, underscoring expectations that policymakers will refrain from sharp interest rate cuts this year.

The Fed began cutting its key interest rate in September, to a full 1% cut by the end of 2024.

The US central bank is widely expected to keep interest rates in a range of 4.25 percent to 4.5 percent at its next meeting later this month.

Friday’s figures showed the unemployment rate was 4.1 percent, compared to 4.2 percent in November.