Treasuries Drop on Jobs Raising Yield to Most in 2 Months

Treasuries dropped, pushing 10-year note yields to the highest in two months, after a report showing continued jobs-market strength boosted bets the Federal Reserve may consider raising interest rates sooner than forecast.

Yields on two-year debt climbed to the most since September as the unemployment rate fell to an almost six-year low and employers added more jobs than forecast. Traders pushed the odds up to almost even that Fed Chair Janet Yellen and policy makers will lift borrowing costs by next June. Ten-year yields rose to a 15-year high versus German bunds after the European Central Bank kept interest rates at record lows. The U.S. is scheduled sell $61 billion in notes and bonds next week.