US Treasurys fall after jobs report beat

Bond traders at CME Group
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U.S. government debt prices were lower on Friday as investors digested the release of a better-than-expected jobs report.

The U.S. economy added 255,000 jobs last month, while economists expected a gain of 180,000 jobs. The unemployment rate remained unchanged at 4.9 percent.

The yield on the benchmark 10-year Treasury note sat higher at 1.5860 percent, while the yield on the 30-year Treasury bond was also higher at 2.3130 percent. Two-year note yields also rose, to trade at 0.7101 percent. A bond's yield moves inversely to its price.

Economists expect a solid 180,000 jobs were created in July and that wages rose modestly, following two months this spring where it looked as though hiring went from bust to boom.

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The unemployment rate is expected to fall to 4.8 percent from 4.9 percent, according to Reuters.

The U.S. trade deficit rose to a 10-month high in June as rising domestic demand and higher oil prices boosted the import bill while the lagging effects of a strong dollar continued to hamper export growth.

The Commerce Department said on Friday the trade gap increased 8.7 percent to $44.5 billion in June, the biggest deficit since August 2015. May's trade deficit was revised slightly down to $41.0 billion.

Elsewhere on the data front, Friday will see consumer credit data released at 3:00 p.m. ET.

In oil markets, U.S. crude was at $41.87, down 0.14 percent.

—CNBC's Patti Domm contributed to this report