U.S. Treasury yields climbed higher Friday morning as the Labor Department’s highly anticipated jobs report came out better than expected.
The yield on the benchmark 10-year Treasury note added nearly 6 basis points, rising to 1.277% at 8:35 a.m. ET. The yield on the 30-year Treasury bond rose close to 6 basis points to 1.92%. Yields move inversely to prices.
Economists expected the U.S. economy to have added 845,000 jobs last month, according to estimates from Dow Jones. However, there is uncertainty in the market, as demonstrated by the broad range of forecasts — from 350,000 on the low end to 1.2 million at the top.
Employment data is key to the Federal Reserve’s decision to pare back its bond buying program, beginning the process of tightening its easy monetary policies more broadly and acting as a precursor to the raising of interest rates.
The Labor Department reported on Thursday that 385,000 jobless claims had been filed last week, matching economist forecasts.
This saw the 10-year Treasury yield climb above 1.2% in afternoon trading, having fallen to its lowest point since February on Wednesday, following disappointing employment data from private payroll firm ADP.
There are no auctions due to be held on Friday.
— CNBC’s Pippa Stevens and Patti Domm contributed to this market report.
