Treasury Yields Rise After Jobs Report

By Joseph AdinolfiMarketsMarketWatch Pulse

Treasury prices moved marginally lower Friday, pushing up yields, after the Labor Department said the U.S. economy added 161,000 jobs last month. Two-year notes saw the sharpest rise, adding 1.6 basis point to 0.822%, as the data was seen supporting the Federal Reserve's case for raising interest rates in December. Short-term yields are most sensitive to rate expectations. The 10-year gained half a basis point to 1.816%, while the 30-year ticked up 0.1 basis point to 2.600%. While the headline number was slightly weaker than 1750,000 economists had expected, the details of the report, including upward revisions to the September and August numbers and a stronger-than-expected increase in wage growth, were much stronger. Still, strategists believed the drop in demand would be short lived, as investors remain focused on Tuesday's election. "But I think people are looking through this number to the election," said Thomas di Galoma, managing partner of Treasury trading at Seaport Global.

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