US Treasuries rally on jobs data, revision a drag
NEW YORK, Oct 8 (Reuters) - Treasury debt prices rallied on Friday after a key report on U.S. jobs proved soft, reviving speculation the Federal Reserve may soon pause in its interest rate hiking campaign.
Non-farm payrolls rose 96,000 in September, well below forecasts of a 148,000 rise. August's outcome was revised down but that was matched by an upward revision to July jobs. The unemployment rate held at 5.4 percent as expected.
Bond bulls were restrained somewhat by benchmark revisions to March 2004, which the Bureau of Labor Statistics said would amount to an upward adjustment of 236,000 to the level of employment.
The benchmark 10-year Treasury note <US10YT=RR> rose 13/32 in price, lowering yields to 4.19 percent from 4.25 percent late on Thursday. Two-year note yields <US2YT=RR> fell to 2.63 percent from 2.70 percent