WASHINGTON (dpa-AFX) - Following the downturn seen over the course of the previous session, treasuries showed an even more substantial move to the downside during trading on Friday.
Bond prices came under pressure early in the session and slid more firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, surged 11.6 basis points to 4.510 percent.
The sell-off by treasuries came following the release of a closely watched Labor Department report showing slightly stronger than expected U.S. job growth in the month of May.
The Labor Department said non-farm payroll employment shot up by 139,000 jobs in May after jumping by a downwardly revised 147,000 jobs in April.
Economists had expected employment to increase by about 130,000 jobs compared to the addition of 177,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate came in at 4.2 percent in May, unchanged from the previous month and in line with economist estimates.
The modestly bigger than expected increase in employment helped offset concerns about the strength of the economy following some recent downbeat data.
'The slowdown in the job market has been quite smooth so far without many surprises,' said Jeffrey Roach, Chief Economist for LPL Financial. 'If payroll growth trudges on like this, the Fed will likely remain in 'wait and see' mode.'
Reports on consumer and producer price inflation and consumer sentiment are likely to be in focus next week, while traders are also likely to keep an eye on any developments on the trade front.
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