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Treasury yields edge off lows after initial fall on jobs miss

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. sovereign bond prices reversed after initially falling in early trade Friday following of the release of August's nonfarm payroll numbers, which could provide a clue on the timing of the next interest rate rise by the Federal Reserve.

Nonfarm payrolls increased just 151,000 for the month, below the expected 180,000, extending the futility August has experienced over the years. This is now the 10th time in the past 13 years the month whiffed on market expectations. The unemployment rate was unchanged at 4.9 percent, according to the Bureau of Labor Statistics.

The 2-year Treasury yield briefly hit its lowest since Aug. 23. It last moved higher to 0.7937 percent.

The yield on the 7-year Treasury note also edged higher to 1.4683 percent.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, edged higher to 1.6049 percent, while the yield on the 30-year Treasury bond was also higher at 2.2782 percent.

Additionally, Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday that the U.S. economy appears strong enough to warrant significantly higher interest rates.

Lacker said the case for higher rates would only grow stronger unless job growth slowed "significantly in the months ahead."

Lastly, the Commerce Department said on Friday that new orders for manufactured goods rebounded 1.9 percent after a downwardly revised 1.8 percent decrease in June. It was the biggest rise since October 2015 and followed two straight months of declines.

—Reuters, Matt Clinch, Jeff Cox, and Patti Domm contributed to this report.