RTRS: TREASURIES-U.S. bond yields climb on strong employment report
* U.S. added 242,000 jobs in February
* Yields climb, but gains limited by weak wages number
* 3,5,7,10-year yields climb to highest in about a month
By Tariro Mzezewa
NEW YORK, March 4 U.S. Treasury yields rose on Friday after data showed a surge in U.S. jobs growth in February, but gains were limited by weak wages data and continued safety bids.
The Labor Department said nonfarm payrolls increased by 242,000 last month. The unemployment rate held at an eight-year low of 4.9 percent, even as more people piled into the labor market.
Yields initially soared with the benchmark 10-year note, 3-year, 5-year and 7-year jumping to their highest in about a month.
The yields quickly dipped, with analysts citing the weak average hourly earnings data that suggested inflation remained below the Federal Reserve's target.
"It's a strong number overall, but the market is taking it in stride because even though the headline was stronger, the market is, for the most part, also looking at details including average hourly earnings," said Subadra Rajappa, head of U.S. rates strategy at SG Corporate & Investment Banking in New York. "The rates market is focused on more than just the headline, so we saw a little bit of a selloff, but not enough to hold up."
Treasuries have largely followed crude oil moves this year as tumbling prices have stoked concerns about slowing global growth and the efficacy of central bank policies meant to try to spur new investment.
Also, fears of a recession sparked a global equities rout in January, sending investors to safe-haven government debt.
"If anything, this should go a long way in reassuring markets that the U.S. isn't headed towards a recession," said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York. "This (jobs report) pretty much goes to support the fact the U.S. economy continues to grow and the Fed can raise rates."
The Federal Open Market Committee, the Fed's policy-setting group, will meet on March 15-16.
The benchmark 10-year note yield rose to 1.885 percent, its highest in nearly a month. The note was last up 12/32 in price to yield 1.867 percent, down from 1.83 percent late on Thursday.
The 30-year bond was last down 22/32 in price to yield 2.696 percent, up from 2.66 percent late on Thursday. It reached a session high of 2.711 percent. (Editing by Jeffrey Benkoe)
