NEW YORK (MarketWatch) -- Treasurys declined Friday after the Labor Department said the economy lost 533,000 jobs in November, more than economists expected.
Some investors and traders had been bracing for an even deeper loss.
Two-year note yields rose 2 basis points, or 0.02%, to 0.84%.
Benchmark 10-year note yields rose 3 basis points to 2.58%. Bond yields move in the opposite direction of prices.
The data adds to evidence that the recession may be accelerating, and may add to concerns among bondholders that it may raise Congress's willingness to pump up the economy, including a better chance of a bailout for U.S. automakers, all of which will be financed by increased debt issuance.
"The worse the number, the more the stimulus is coming," said Andrew Brenner, co-head of structured products and emerging markets at MF Global. "Hence, Treasurys are not rallying initially."
Economists surveyed by MarketWatch predicted 350,000 jobs would be cut. The unemployment rate rose to 6.7%, the highest since 1993. Expectations were for an increase to 6.8%.
"This was a shockingly weak number," said James DeMasi, fixed-income strategist at Stifel Nicolaus & Co. "The economic downturn is intensifying. This can provide a lot more fuel for rates to move lower from here, strange as it sounds" with 10-year yields near the lowest since the 1950s.
Two-year note yields are near the lowest since the 1970s.
