US Treasury yields rise after strong jobs report, solid economic data

U.S. government debt yieldsrose on Monday following Friday's strong jobs report.

The U.S. economy added 223,000 jobs in May, data revealed Friday, leading government debt prices to fall, as traders became more confident on the economy's prospects and the likelihood that the Federal Reserve will be forced to increase rates at a fast pace.

Economists had been expecting payroll growth of 188,000 and the jobless rate to hold steady at 3.9 percent.

The closely watched average hourly earnings metric rose 0.3 percent, slightly warmer than expected, yielding an annualized rate of 2.7 percent, up one-tenth of a point from April.

Investors have been scrutinizing headline jobs numbers to try to determine whether a tight labor market is spurring wage growth. The Federal Reserve has also been keeping a close eye on signs of inflation. Central bankers have indicated that two more interest rate hikes are likely this year in addition to the one they approved in March.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.946 percent, while the yield on the 30-year Treasury bond was also higher at 3.086 percent.

The yield on the two-year Treasury note hit a high of 2.5 percent, its highest level since May 25.

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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New orders for U.S.-made goods fell more than expected in April, according to the Department of Commerce. Declines in demand for transportation equipment and machinery appeared to hamper the figures, though the persistent trend seemed to suggest a robust manufacturing sector overall.

Factory goods orders fell 0.8 percent for April, while data for March was revised upward to 1.7 percent instead of the previously reported 1.6 percent. Economists polled by Reuters had forecast orders falling 0.5 percent.

And in oil markets, prices were mixed. Brent crude traded at around $76.79 a barrel on Monday morning, while U.S. crude stood at $66.01 a barrel. The market was impacted by higher U.S. output and expectations that OPEC will increase supplies, Reuters reported.