Following the release of upbeat employment data, treasuries showed a significant move to the downside during trading on Friday.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 7.3 basis points to 2.895 percent.
The weakness among treasuries came following the release of a report from the Labor Department showing stronger than expected job growth in the month of May.
The Labor Department said non-farm payroll employment surged up by 223,000 jobs in May after climbing by a downwardly revised 159,000 jobs in April.
Economists had expected employment to increase by 188,000 jobs compared to the addition of 164,000 jobs originally reported for the previous month.
With the stronger than expected job growth, the unemployment rate edged down to 3.8 percent in May from 3.9 percent in April. The unemployment rate had been expected to come in unchanged.
The modest decrease pulled the unemployment rate down to its lowest level since a matching rate in April of 2000.
Additionally, the Institute for Supply Management released a report showing growth in manufacturing activity accelerated by more than expected in the month of May.
The ISM said its purchasing managers index climbed to 58.7 in May from 57.3 in April, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to rise to 58.1.
Next week, trading may be impacted by reaction to reports on service sector activity, factory orders, and international trade.
by P2PNews Staff Writer