This week witnessed an improvement in the U.S. government bond yields, after the release of August’s employment data revealed that the economy has added more jobs than what was expected in the previous month. The yields had declined for five straight sessions, amid concerns about the COVID-19 virus.

The yield on the 10-year Treasury note recently traded at 0.688%, on pace to end a five- session streak of declines. That compares with 0.645% before the report’s release. Yields on longer-dated Treasuries also climbed, with the 30-year yield recently trading at 1.431%, up from 1.341% Thursday.

The yields rose after the U.S. Labor Department said that the economy added 1.4 million jobs in August, as against rather pessimistic market forecasts, bringing the unemployment rate down to 8.4%; below double-digit rates since March of this year. This has eased apprehensions about the pace of recovery in the labor market.

This positivity in the labor market is seen favoring the longer-term yields, as their maturities are highly sensitive to the growth of the economy and inflationary pressures.

Traders are also looking forward to the $108 billion wave of coupon-bearing debt auctions.

The report has left the fixed income market with mixed sentiments. While many hope for a steady revival of the economy, dangers of the pandemic cannot be ignored, and even though there has been a bounce back in employment, there is still a long way to go.