The two-year Treasury note yield rose to its highest level since April 2011 as investors sold short-term bonds on the expectation that the blockbuster nonfarm payrolls number will prompt the Fed to raise interest rates sooner than previously thought. The two-year yield gained 9.1 basis points to 0.635%, according to data from Tradeweb data, after the Commerce Department said the U.S. economy added 321,000 jobs in November. Economists polled by MarketWatch had expected a gain of 235,000. The three-year Treasury yield rose 11.2 basis points to 1.062%, its highest level in two months. The five-year note yield also hit a two-month high, rising 10.5 basis points to 1.626%. The benchmark 10-year note yield gained 6.4 basis points to 2.319%, its highest level in 2 weeks, as investors piled into longer-duration debt. The 30-year bond yield gained 3 basis points to 2.990%, its highest level in three days.Bond yields move inversely to prices.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below