Treasurys Surge as Jobs Data Ease Fears
Treasury bonds rallied broadly, as the U.S. employment report for July soothed concerns that the Federal Reserve may raise interest rates sooner than investors expect.</br></br>In late afternoon trading Friday, the benchmark 10-year note was up 15/32, yielding 2.505%.</br></br>The two-year note was up 4/32, yielding 0.476%. Bond yields fall when their prices rise.</br></br>Investors piled into U.S. government bonds after the Labor Department said the U.S. economy added a smaller-than-forecast 209,000 nonfarm payrolls in July. Average hourly earnings rose one cent from June to $24.45 last month, a sign that wage inflation remains tame.</br></br>"The bond market is telling you that it is not a bad report, but it is not strong enough to force the Fed to rush to raise interest rates," said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading in New York at Deutsche Bank AG's private wealth-management unit.