Good news about jobs, bad for bonds

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Treasurys fell Friday as investors shifted into riskier assets, like stocks, which rallied following a jobs report that showed the pace of job losses abating.

What prices are doing: The benchmark 10-year note fell 23/32 to 99-14/32 and its yield rose to 3.70% from 3.60%. Bond prices and yields move in opposite directions.

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Click on chart to check other Treasurys

The 30-year bond fell 1-10/32 to 99-25/32 and its yield rose to 4.64%.

The 2-year note fell 4/32 to 99-29/32 with a yield of 0.93%. The 5-year note fell 13/32 to 100-2/32 with a yield of 2.37%.

What's moving the market: Investors welcomed a Labor Department report that showed employers cut payrolls by a total of 36,000 jobs last month, following a 26,000 loss in January. Economists surveyed by Briefing.com expected 68,000 jobs to be cut.

Stocks surged following the report, which raised investor optimism about the strength of the recovery.

The unemployment rate, generated by a separate survey, held steady at 9.7%, versus forecasts for a rise to 9.8%.

Overseas markets also made solid gains in wake of the payrolls report and as investors became more confident about a solution to Greece's debt. Greece approved a package to cut about $6.52 billion from the country's ballooning deficit.

What analysts are saying: Good news is typically bad for bonds, analysts say, as investors delve into riskier assets and away from lower-risk government bonds.

"It's the employment report. It wasn't nearly as bad as some as feared, so we're seeing a bit of unwinding of some bets that the economy was going to remain in the doldrums," said Kim Rupert, a fixed income analyst for Action Economics. To top of page

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