Market Insider

Jobs report signals higher interest rates ahead

Bond yields rose to a six-week high as traders saw the surprise gain in February jobs as a sign of a stronger economy, and a signal that interest rates could continue to move higher.

February nonfarm payrolls totaled 175,000, well above the consensus of 150,000. The unemployment rate rose to 6.7 percent, from 6.6 percent. The survey also showed the number of people with jobs who stayed home because of bad weather was 601,000, the highest level since February, 2010.

The 10-year yield, touched 2.81 percent, the highest level since Jan. 23 and was holding at the top of its recent range – 2.785 percent. It also caps a dramatic week for the benchmark yield,which touched a low of 2.60 percent Monday.