Treasury Yields Rise After Jobs Report

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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