The US non-farm payroll report will become the market focus; its strength may determine yields and stock market trends.

According to analysis from foreign media, on Friday, government bond yields in various countries retreated, providing some room for a stock market rebound. European stocks rose, and US stock futures performed steadily, with tech stocks remaining resilient in pre-market trading. However, the US Non-Farm Payrolls report could soon shift the market’s focus once again. Since US Treasury yields are already near multi-decade highs, the market will pay particular attention to any signals in the employment report that could reinforce the idea that “interest rates will remain high for a longer period.” This means that the market's focus is not limited to just the number of new non-farm jobs. If employment data is strong and accompanied by accelerating wage growth, it could drive US Treasury yields higher again and quickly test the current stock market rebound. Conversely, if the employment report is weak, it could further ease yield pressures and help risk appetite continue to recover. However, a single report alone is unlikely to signal a change in the overall trend.