By Nick Godt, MarketWatch
NEW YORK (MarketWatch) — Treasurys tumbled on Wednesday, sending yields higher, after a report showed U.S. private-sector employment rose 93,000 in November, the largest gain in three years.
A separate report showed productivity was revised higher in the third quarter, while unit labor costs fell 0.1%.
Yields on benchmark 10-year Treasury bonds (UST10Y 2.94, +0.14, +5.11%) , which move inversely to prices, rose 11 basis points to 2.912%. A basis point is 0.01%.
Yields on 2-year Treasurys notes (UST2YR 0.52, +0.06, +12.81%) were up 3 basis points at 0.492%, while those on 30-year bonds (UST30Y 4.21, +0.10, +2.31%) surged 9 basis points to 4.205%.
Also removing some safe-haven interest in Treasurys, the cost of insuring Portuguese, Spanish and other euro-zone government debt against default fell sharply after reaching record levels.
The drop came after remarks by European Central Bank President Jean-Claude Trichet lifted hopes of increased bond purchases by the central bank.
