U.S. Treasuries fall ahead of October non-farm payrolls data, unemployment rate

The U.S. Treasuries fell during late afternoon session Friday ahead of the country’s non-farm payrolls data for the month of October and unemployment rate for the similar period, both scheduled to be released today by 12:30GMT respectively.

The yield on the benchmark 10-year Treasuries jumped nearly 2-1/2 basis points to 3.167 percent, the super-long 30-year bond yields climbed 1-1/2 basis points higher to 3.401 percent and the yield on the short-term 2-year traded 2-1/2 basis points higher at 2.879 percent by 11:30GMT.

After a soft reading of only 134k in the previous month and consistent with the strong ADP report earlier this week, expectations are for a big increase in non-farm payrolls of close to 200k, which would be broadly in line with the average of the past six months.

Further, the unemployment rate is set to remain unchanged at 3.7 percent, while average hourly earnings should advance 0.2 percent m/m, a touch softer than the readings of recent months, Daiwa Capital Markets reported in its latest commentary.

But with wages having fallen in October last year, the annual pace should rise above 3 percent y/y for the first time since 2009. Among other new data, factory orders are expected to post a solid rise of 1/2 percent m/m or more in September, while the full trade report for the same month will probably show an increase in the trade deficit in line with the figures for goods trade released last week, the report added.

Meanwhile, the S&P 500 Futures traded 0.67 percent higher at 2,703.25 by 11:35GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -106.13 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex