A strong U.S. jobs report has strengthened the argument for interest-rate increases, even as President Donald Trump warned he could halt trade with some countries unless the Federal Reserve cuts rates, leaving Fed Chairman Kevin Warsh under pressure ahead of the September meeting. Labor force participation rose to 61.6%, and job gains helped keep the unemployment rate steady at 4.1%. Inflation has been above the Fed’s 2% target for more than five years, and Warsh’s recent hawkish comments have been read as opening the door to a possible rate hike.

A selloff in long-dated U.S. Treasuries has pushed the 30-year yield up to 5.29%, the highest level since 2007. Investors have focused on rising national debt, heavy long-bond supply and inflation running above the Federal Reserve’s target. The Treasury sold $25 billion of new 30-year bonds at a 5.216% yield, the highest auction level since 2001. Inflation has remained sticky, with the consumer price index up 3.4% year over year.