Treasuries Recover From Early Weakness But Move Back To The Downside

(RTTNews) - After recovering from early weakness, treasuries moved back to the downside over the course of the trading session on Friday.

Bond prices climbed back near the unchanged line in morning trading but moved lower in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.2 basis points to 4.156 percent.

The lower close by treasuries came following the release of the Labor Department's closely watched monthly employment report for October.

The report showed non-farm payroll employment jumped by 261,000 jobs in October after surging by an upwardly revised 315,000 jobs in September.

Economists had expected employment to climb by about 200,000 jobs compared to the addition of 263,000 jobs originally reported for the previous month.

Meanwhile, the Labor Department said the unemployment rate rose to 3.7 percent in October from 3.5 percent in September. The unemployment rate was expected to inch up to 3.6 percent.

The report generated a mixed reaction among traders, creating uncertainty about the outlook for future interest rate hikes.

A report on consumer price inflation is likely to be in focus next week, as traders look for additional clues about the outlook for interest rates.