Treasuries Tumble as Jobs Gains Back Case for Fed Rate Increase
- Futures show a 68% probability of a December liftoff
- Strong employment may have a `halo effect' on other data
U.S. Employment in Oct. Surges By Most This Year
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Treasuries plunged after a government report showed the pace of U.S. jobs growth accelerated in October, bolstering speculation that the economy will be strong enough for the Federal Reserve to raise interest rates next month.
Yields on two-year Treasuries rose to the highest since May 2010 after the Labor Department said the nation gained 271,000 jobs last month, following an increase of 137,000 in September. The median forecast in a Bloomberg News survey of economists was for an addition of 185,000.