Bonds edge higher on jobs report

NEW YORK (CNNMoney.com) -- Bond prices inched higher Friday as a mixed January jobs report offset upbeat readings on consumer sentiment and the manufacturing sector.

The dollar climbed against the euro and the yen.

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The benchmark 10-year note rose 2/32, or 63 cents on a $1,000 note, to yield 4.82 percent, down from 4.83 late Thursday.

The 30-year bond climbed 3/32, or 94 cents on a $1,000 note, to yield 4.93 percent, relatively unchanged from the previous session.

Bond prices and yields move in opposite directions.

In shorter-dated debt, the five-year note rose 5/32, yielding 4.80 percent, while the two-year note climbed two ticks to yield 4.92 percent.

Bonds climbed early in the session after the Labor Department reported U.S. payrolls grew 111,000 in January, falling far short of forecasts. (Full story)

Economists surveyed by Briefing.com forecast employers added 150,000 jobs to payrolls last month, down from 167,000 in December.

The unemployment rate edged up to 4.6 percent, versus forecasts for a 4.5 percent reading.

Treasury prices pared some of their gains following an upward revision to the previous two months' data, Reuters reported.

Adding downward pressure was the Commerce Department's report that new orders at U.S. factories rose 2.4 percent in December, topping expectations. (Full story)

In its monthly consumer sentiment reading, the University of Michigan reported the survey jumped to its highest level in two years, although it fell short of expectations. (Full story)

Friday's reports come at the end of a busy week in terms of economic news. Earlier this week, the Federal Reserve left interest rates untouched for the fifth straight time at 5.25 percent, suggesting they saw signs that inflation is starting to wane.

In currency trading, the euro bought $1.2968, down from $1.3020 late Thursday. The dollar bought ¥121.07, up from ¥120.71 in the previous session.

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