Despite the latest employment data suggesting that the labor market is still at full strength, U.S. Treasury yields slipped on Thursday on the short and long ends of the curve. ADP and Moody’s Analytics reported that private payrolls added 163,000–less than the expected 190,000 and the Labor Department reported unemployment filings fell to a 49-year low.

The benchmark 10-year yield went down to 2.877 while the 30-year yield dropped to 3.057. Short-term yields also slipped with the 2-year going to 2.637 and the 5-year to 2.743.

The employment data may have presented investors with a mixed bag, but it still reveals a robust job market amid the backdrop of an extended bull run in the capital markets despite private payrolls missing its expectations. Companies added 163,000 jobs in August, which represents a tangible slowdown versus the 217,000 added in the previous month and below the average of 206,000 a month.

Additionally, the month of August revealed a steep decline in hiring by small businesses, but in spite of this, the labor market continues to thrive. Furthermore, this sentiment is paired with an unemployment rate that continues to be at historically low levels.

“Although we saw a small slowdown in job growth the market remains incredibly dynamic,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

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