NEW YORK (Reuters) - Yields on U.S. government bonds jumped on Friday morning after domestic job growth slowed less than expected in October, suggesting the Federal Reserve was justified in signaling on Wednesday that it would pause interest rate cuts going forward.
The Labor Department’s report showed that a drag from a strike at General Motors (GM.N) was offset by gains elsewhere, while hiring in the prior two months was stronger than previously estimated, offering assurance that consumers would continue to prop up the slowing economy for a while.
The benchmark 10-year yield US10YT=RR was last up 1.2 basis points to 1.703%. The two-year yield US2YT=RR, a proxy for market expectations of interest rate moves, was up 3 basis points to 1.556%.
Reporting by Kate Duguid; Editing by Chizu Nomiyama