Treasurys pop after jobs report
Government debt prices move higher after Labor Department reports unemployment rate spiked to 10.2%.
 |
| Click chart to see current prices and yields. |
NEW YORK (CNNMoney.com) -- Treasury prices were higher Friday after the government reported that unemployment spiked to 10.2% -- its highest level since April 1983.
The jump raised demand for the perceived safety of government-backed debt, which typically attracts investors in times of economic uncertainty.
But gains were limited ahead of next week's $81 billion record refunding, which includes 2-year and 10-year notes, along with the 30-year bond.
An announcement about more supply typically reduces debt prices. Investors has been pushing prices lower in previous sessions ahead of Friday's jobs report.
"If you're on a trading desk, you want to be set up before the big number comes out," said Steve Van Order, fixed income analyst at Calvert Funds. "Prices will bounce around and mostly take their lead from the stock market. The odds are pretty good that we won't have a big trading range today."
Trading was volatile on Wall Street Friday as investors digested the jobs data, but stocks ended higher.
The Labor Department reported that 190,000 jobs were shed in October, higher than analysts' expectations of 175,000, but a drop from a revised 219,000 cuts in September.
"The pace of job losses continues to abate, so that's good news," Van Order said. "But the surprise was the jump in the unemployment rate, and the market seems to be reacting broadly."
The jobs report boosted safe havens including the dollar and gold, and pressured riskier assets such as oil.
Treasury prices on the rise. The Treasury will kick off the sale with $40 billion of 3-year notes Monday. The auction will continue with $25 billion of 10-year notes and $16 billion of 30-year long bonds later in the week.
The benchmark 10-year note edged up 7/32 to 101-1/32 and its yield was down 3.50% from 3.53% late Wednesday. Prices and yields move in opposite direction.
The 30-year bond gained 2/32 to 101-23/32. Its yield fell to to 4.40%.
The 2-year note moved up 2/32 to 100-10/32, with a yield of 0.85%.
The yield on the 3-month bill was 0.06% 
