Treasury Two-Year Notes Decline as Wage Growth Boosts Fed Bets
- Hourly earnings rise 2.5% in past year, exceeding forecasts
- Traders lift wagers on 2016 rate increase amid inflation signs
How Will U.S. Jobs Report Impact Fed Rate Policy?
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Treasury two-year notes fell as a report showing stronger U.S. wage growth in January prompted traders to boost wagers that the Federal Reserve will raise interest rates in 2016.
Yields rose after the Labor Department said the U.S. created 151,000 jobs last month, less than the 190,000 median forecast in a Bloomberg survey of economists. Average hourly earnings rose 0.5 percent from a month earlier, more than the 0.3 percent forecast. The year-over-year increase of 2.5 percent followed a 2.7 percent jump in the 12 months ended in December that was the biggest advance since mid-2009.