Bond yields are slipping, a sign that traders are getting nervous about the economy and hunting for safety.

• The US unexpectedly lost 23,000 jobs in July, raising worries about the job market.
• Nervous traders are selling stocks and moving money into Treasury bonds for safety.
• When more people buy bonds, the yield drops — which is what just happened.
• Falling yields also dim the odds of higher Fed interest rates anytime soon.
• Bond investors look further ahead than stock investors, making bonds a good gauge of where the economy is heading.

Outlook: If the job market keeps weakening, expect yields to fall further and pressure on the Fed to cut rates.