Treasury prices rose Friday after the Labor Department said the U.S. unemployment rate rose to the highest in 26 years.
"There are no green shoots here," said analyst at RBS Greenwich Capital.
The yield on 10-year notes , which move inversely to the price, decreased 1 basis point to 3.32%. A basis point is 0.01%.
Two-year yields fell 4 basis points to 0.98%.
The report also said the economy lost 539,000 jobs last month, less than economists expected. The unemployment rates rose from 8.5% and matched the expectations of analysts' surveyed by MarketWatch. The government also revised higher the previous two month's losses were revised higher. See more on jobs report.
"Employers are letting up a bit on the mass layoffs they resorted to earlier this year to cope with the recession," said Ken Jaques, credit and derivatives manager at Informa Global Markets. "Even after a recovery takes hold since companies will have little appetite to resume hiring until they feel the economy is truly out of the woods and a recovery is firmly rooted."
Gains may be limited as the results of bank stress tests released Thursday were mostly in line with unofficial reports, showing that collectively the banking sector is secure.
