Treasury yields rose on Friday after official data showed the U.S. economy added 156,000 jobs in December. The yield on the 10-year note rose 2.1 basis points to 2.371%, while the two-year yield rose 1.6 basis point to 1.182%. The yield on the 30-year bond 2.1 basis point to 2.966%. Though the headline number was marginally below expectations, fixed-income investors focused on a stronger-than-expected reading on average hourly earnings, which rose 0.4%. "It's still a fairly solid number and the wage component is definitely the focal point," said Tony Bedikian, managing director and head of global markets at Citizens Bank. Rising wages typically boost inflation, and when inflation expectations rise, bond investors demand a higher return on their investments to compensate for the corrosive impact of higher consumer prices.
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