(Bloomberg) — The inflation-adjusted yield on Treasuries maturing in three decades’ time climbed above zero for the first time since June after stronger-than-anticipated U.S. jobs data added fuel to the argument for faster tightening of Federal Reserve policy.

According to Treasury inflation-protected bonds, the so-called 30 year real yield jumped by more than four basis points to 0.024%. This level was not seen since May. In June, the benchmark stood above zero for the last time. Nominal Treasuries plunged to lows in the morning following employment data. Declines were seen at the top-end and bottom of the curve.

Swaps markets showed around 32 basis points of tightening priced in for the Fed’s March meeting, slightly more than before, suggesting the market sees at least a quarter point of tightening as a done deal and around a one-in-four chance of a super-sized half-point rate increase. The whole of 2022 is expected to see an increase of 130 basis points.

According to a Labor Department report, nonfarm payrolls rose 467,000 in January following a revised 510,000 increase in December. While the unemployment rate rose to 4%, average hourly earnings shot up. A Bloomberg survey of economists found that the median forecast called for an increase in payrolls by 125,000, but there were many other projections. 

Last month, Chair Jerome Powell indicated that the central bank would likely begin an interest-rate cycle in March. This opened up the possibility of more frequent and possibly larger increases than expected. Risk assets have already been affected by the abrupt change in monetary policy. They are now pondering the possibility of more aggressive monetary policies after the panic over the pandemic. Last month, the Index (which includes growth stocks that are particularly sensitive to rising rates) fell into correction.

Rates on five- and two-year Treasury notes were pushed to their highest levels this year by the selloff, helping flatten out the yield curve. While the three-year rate rose almost 10 basis points, it was 1.52%. The 10-year benchmark was around 1.90%.