US jobs report beats forecasts, Treasury yields rise

US nonfarm payrolls rose by 165,000 jobs in October, far exceeding expectations, while the unemployment rate fell to 4.1%, signaling a resilient labor market and increasing the likelihood of a Federal Reserve interest rate hike in December. The Labor Department reported the gain on Friday, with September's figure revised upward to 60,000 from a previously reported 29,000. Economists had forecast only a 65,000 increase. Treasury yields rose following the release, and market bets on a December rate hike climbed to 78% from 70%. The strong report gives the Fed more room to focus on inflation risks stemming from the Middle East conflict. Analysts noted upward revisions and steady hiring, though some flagged rising involuntary part-time work as a sign of underlying slack.