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10-year Treasury yield rises to a 3-week high after U.S. jobs report

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Watch three experts weigh in on the November jobs miss

Treasury yields climbed on Friday as the disappointing U.S. jobs report boosted expectations for further fiscal stimulus.

The yield on the benchmark 10-year Treasury note rose 5 basis points to 0.975%, its highest level since Nov. 10. The yield on the 30-year Treasury bond jumped 7 basis points to 1.741%. Yields move inversely to prices.

Treasurys

The U.S. economy added 245,000 jobs in November. That's well below a Dow Jones consensus estimate of 440,000.

"The employment report was weaker than expected, BUT the yield has actually moved up this morning," Matt Maley, chief market strategist at Miller Tabak, said in a note. "We're guessing that the market believes that this number will get Congress to move more quickly on the Covid relief package."

The jobless rate decreased to 6.7% from 6.9% in October. The unemployment rate met expectations, though it fell along with a drop in the labor force participation rate to 61.5%.

The worse-than-expected jobs report could put pressure on lawmakers who resumed negotiations in recent days over a much-needed stimulus package.

House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell spoke on the phone Thursday for the first time since at least the presidential election. Pelosi and Senate Minority Leader Chuck Schumer backed a bipartisan $908 billion stimulus package, while McConnell released his own roughly $500 billion plan.

"A disappointing payrolls number could give way to even weaker figures over the next couple of months as the pandemic worsens and containment measures intensify," said James Knightley, chief international economist at ING. "The need for fiscal support is only going to become more pressing."

Schumer tweeted that Friday's big jobs miss underscored the urgent need for more stimulus to support struggling American families.

Friday's report comes as the number of coronavirus cases has been rising sharply. The U.S. reported record numbers on Thursday of new infections, single-day deaths and hospitalizations.

CNBC's Fred Imbert and Patti Domm contributed to this article.