Bonds

U.S. Treasury yields rise as unemployment rate dips

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Key Points
  • The headline unemployment rate declined to 6.3% from 6.7% in January, according to the Labor Department, but some of the underlying numbers were less encouraging.
  • Elsewhere, the U.S. dollar remained on pace for its best weekly performance in three months, up more than 1% week-to-date.

U.S. government debt prices rose on Friday morning as the monthly jobs report showed that the unemployment rate ticked down in January.

Treasurys

At around 4:00 p.m. ET, the yield on the benchmark 10-year Treasury note was higher at 1.15%, while the yield on the 30-year Treasury bond was also higher at 1.95%. Yields move inversely to prices.

The headline unemployment rate declined to 6.3% from 6.7% in January, according to the Labor Department, but some of the underlying numbers were less encouraging. The economy added 49,000 jobs, slightly missing estimates, and a revision to the December report showed a larger loss of jobs than previously reported.

The report follows stronger-than-anticipated data on U.S. jobs markets in recent days and amid hopes of another coronavirus relief package.

President Joe Biden's administration is pushing ahead with plans to pass a $1.9 trillion economic relief plan, seeking to prop up the U.S. economy as it grapples with the ongoing Covid pandemic.

The stimulus plan has prompted disagreement with Republican lawmakers over state and local funding and other provisions. However, it is thought the relief plan, known as the American Rescue Package, could still pass with bipartisan support even if Democrats use a process that requires only a simple majority of senators.

U.S. trade deficit figures for December will be released at the same time, while consumer credit data for December will follow later in the session.

There are no major U.S. Treasury auctions scheduled on Friday.

Elsewhere, the U.S. dollar remained on pace for its best weekly performance in three months, up more than 1% week-to-date.

The dollar index against a basket of six major currencies stood little changed at 91.518 on Friday morning.

— CNBC's Thomas Franck contributed to this report.