However, Fed watchers are divided and say the Fed needs more evidence in November's jobs report that the employment gains are sustainable, and some say it will need several more months of proof. The economy added 204,000 jobs in October, well above the 125,000 expected by economists, and a shocker to a market that expected to see a big miss rather than a gain due to the government shutdown. Another 60,000 jobs were added to August and September in revisions.
Traders immediately dumped bonds, stock futures turned lower and then the market rallied later. The 10-year yield jumped to 2.75 percent, from 2.60 percent earlier in the morning. The dollar index also moved higher, up 0.6 percent to 81.35.