After ending the previous session little changed, treasuries moved to the downside during the trading day on Friday.
Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.4 basis points to 0.820 percent.
The weakness among treasuries came following the release of a closely watched report from the Labor Department showing stronger than expected job growth in the month of October
The report said non-farm payroll employment jumped by 638,000 jobs in October after surging up by a revised 672,000 jobs in September.
Economists had expected employment to increase by 600,000 jobs compared to the addition of 661,000 jobs originally reported for the previous month.
The Labor Department also said the unemployment rate dropped to 6.9 percent in October from 7.9 percent in September. The unemployment rate was expected to slip to 7.7 percent.
“While the drop in unemployment was again mainly driven by temporarily laid-off workers returning to their old jobs, the number of permanent job losers also fell back slightly,” said Andrew Hunter, Senior U.S. Economist at Capital Economics.
He added, “That could be a crucial sign that the longer-term damage from the pandemic will not prove as severe as many had feared.”
Traders also kept an eye on the latest presidential election results, as several key states continue to count votes.
Democratic nominee Joe Biden now leads in Pennsylvania and Georgia, according to the latest numbers, suggesting the former Vice President is on track to exceed the 270 electoral college votes needed to win the White House.
However, President Donald Trump has claimed the increase in votes for Biden in a number of key states is proof of widespread voter fraud and pledged to take legal challenges to the results all the way to the U.S. Supreme Court.
Next week’s trading may continue to be impacted by reaction to the results of this week’s elections, while reports on consumer and producer price inflation may also attract some attention.
Bond traders are also likely to keep an eye on the results of the Treasury Department’s auctions of three-year and ten-year notes and thirty-year bonds.
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