U.S. benchmark Treasurys yields hit two-month highs on Thursday after June U.S. nonfarm payrolls growth beat expectations, while lingering uncertainty about U.S. growth and comments from European Central Bank president Mario Draghi capped the rise in yields.
The Labor Department reported that nonfarm payrolls expanded by 288,000 in June, with the unemployment rate dropped to 6.1 percent, its lowest since September 2008, according to data from the Bureau of Labor Statistics. Both figures were well above Wall Street estimates.
Economists polled by Reuters had forecast a gain of 212,000 jobs in June. It was the first time since the technology boom in the late 1990s that employment has grown above a 200,000 pace for five straight months.
"Employment has bucked the trend of some of the negative data that we saw in the first quarter," said Justin Hoogendoorn, fixed income strategist at BMO Capital Markets in Chicago. "It surely will boost expectations for economic growth."
Analysts said, however, uncertainty as to whether U.S. economic growth will meet stronger expectations after the Federal Reserve concludes its monthly bond-buying program and comments from Draghi limited the rise in yields.