Treasurys Fall As Stocks Post 4th Weekly Gain

NEW YORK (AP) — Treasury prices sank Friday after a report showing massive job losses couldn't hamper gains in the stock market.

Investors were not shocked when the Labor Department said the national unemployment rate surged to 8.5 percent last month, and that U.S. employers slashed 663,000 jobs. Over the past few weeks, investors have been focusing more on nascent signs of economic recovery than on weak data.

Treasurys tumbled, while stocks edged higher to notch their fourth weekly gain.

"I suspect that we're approaching that inflection point where the trading community can no longer be counted on to continue buying Treasuries in response to each incremental sign of economic weakness, and is starting to center its focus on some of the more inflationary aspects of current policy initiatives," Morgan Keegan fixed income analyst Kevin Giddis wrote in a note Friday, referring to the government's stimulus and financial bailout programs.

In late trading, the benchmark 10-year Treasury note fell 31/32 to 98 24/32. Its yield rose to 2.90 percent from 2.76 percent late Thursday. Prices move opposite to yields.