US Treasury yields whipsaw after big jobs report beat


U.S. Treasury yields traded in a back-and-forth range Friday after the June jobs report easily beat expectations.

The U.S. economy added 287,000 jobs last month, well above the expected 175,000. The jobs data is especially key since the shock slowdown in May hiring was one reason the Federal Reserve cited for leaving interest rates unchanged at its meeting last month.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded at 1.3672 percent, after rising to about 1.44 percent. The yield on the 30-year Treasury bond was lower at 2.1071 percent, after rising to 2.17 percent.

About 10 minutes ahead of the report's release, 10-year yields held near 1.38 percent, while 30-year and two-year yields held around 2.13 percent and 0.66 percent, respectively.

"It is great to see the big upside surprise but smoothing out the monthly noise puts the 3 month job average to only 147k and the 6 month average to 172k," Peter Boockvar, chief market analyst at The Lindsey Group said in a Friday note to clients.

"The trend is clear but certainly some of this is what typically happens in the late stage of an economic cycle where the supply of workers shrinks relative to the demand. Expect the slowing hiring trend to continue," he said.

New private sector jobs data - often used as a gauge for the nonfarm payrolls figure - saw a rise by 172,000 in June, versus consensus expectations of 159,000, according to a report Thursday from ADP and Moody's. Friday's employment report is released at 8:30 a.m. ET and a consumer credit report is due at 3.00 p.m. ET.

—CNBC's Patti Domm and Evelyn Cheng contributed to this article.