US yields fall after mixed non-farm payrolls report

NEW YORK: US Treasury yields pulled back on Friday, after data showed wage inflation declined in December even though the economy created more jobs than anticipated, affirming expectations that Federal Reserve will continue to raise interest rates but at a slower pace.

Data showed that US nonfarm payrolls rose 223,000 last month.

Economists polled by Reuters had forecast payrolls increasing by 200,000 jobs.

Average hourly earnings rose 0.3% in December after 0.4% in the prior month.

Dollar jumps on strong employment data

That lowered the year-on-year increase in wages to 4.6% from 4.8% in November.

In early morning trading, US 10-year yields fell 3.6 basis points (bps) to 3.687%. US two-year yields slid 5.1 bps to 4.401%.