The yield on the benchmark 2-year Treasury note rose to its highest level since 2008 after the government's monthly jobs report showed the U.S. economy adding jobs at a brisk pace and wages rising at the fastest pace since April 2009.
Nonfarm payrolls increased a seasonally adjusted 250,000 in October, the Labor Department said Friday, well ahead of the 190,000 expected by economists polled by Refinitiv. The unemployment rate was unchanged at 3.7 percent.
The yield on the benchmark 10-year Treasury note was higher at 3.212 percent, while the yield on the 30-year Treasury bond was higher at 3.452 percent, a level not seen since 2014. For the week, the 10-year Treasury yield has climbed approximately 12 basis points, while the two-year note yield is up more than 9 basis points.
The yield on the two-year Treasury note yield hovered at 2.912 percent after hitting its highest level since 2008 at 2.92 percent. Bond yields move inversely to prices.
With all signs pointing to a robust labor market and persistent hiring, wage pressures have finally begun to gather steam as companies offer fatter paychecks to attract new workers.
Average hourly earnings for private-sector workers increased by 5 cents — or 0.3 percent — last month to $27.30. October represents the first month since April 2009 that the closely watched pay metric rose more than 3 percent from a year earlier.
Wages are up 3.14 percent over the past 12 months through the end of October.