Another Soft Jobs Number

Updated from 10:08 a.m. EST

The U.S. economy's ability to produce jobs continued to disappoint in January, with the Labor Department saying Friday nonfarm payrolls grew by 146,000 last month. The number sparked a bond rally as traders wagered that growth would be restrained in the third full year of economic recovery.

The rise in bond prices was briefly halted when Alan Greenspan was quoted from London saying that the U.S. trade deficit could narrow if the dollar remains weak. It has since resumed.

The Labor Department report was mixed, with the unemployment rate falling to 5.2% in January from 5.4% in December. Economists expected the economy to add 200,000 jobs and for unemployment to hold steady at 5.4%. ...