Bonds

US Treasurys fall after weaker-than-expected jobs report

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U.S. government debt prices were lower on Friday following the release of the December nonfarm payrolls report.

The yield on the benchmark 10-year Treasury note was higher at around 2.411 percent, while the yield on the 30-year Treasury bond rose to 2.993 percent. The short-term two-year note yield also rose, last trading around 1.218 percent. Yields move inversely to prices.

The U.S. economy added 156,000 jobs in December, according to data from the Bureau of Labor Statistics. Economists polled by Reuters expected an increase of 178,000. The unemployment rate came in at 4.7 percent, in line with expectations.

Lindsey Piegza, chief economist at Stifel Fixed Income, characterized the report as "mixed," noting that, while the headline jobs growth number missed estimates, "the Fed is no doubt taking a healthy celebratory lap, feeling confident after this morning's report in their decision to hike at year-end" given the rise in wages.

Average hourly wages rose 10 cents to $26, representing a 2.9 percent annualized gain.

The final report of 2016 comes as the U.S. prepares for what could be a significant shift ahead. President-elect Donald Trump has promised aggressive fiscal measures including tax cuts and higher domestic spending to pull the economy out of the steady but below-trend gains it has seen during Barack Obama's eight years as president.

Treasury prices advanced on Thursday, amid uncertainty surrounding some of President-elect Donald Trump's policies.

Other data released Friday included November factory orders, which fell 2.4 percent, more than expected.


Treasurys