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Bonds Prices Fall on Payrolls Report

Treasuries decline but stock futures edge higher after the government announces a 162,000 increase in nonfarm payrolls.
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Updated from 9:24 a.m. EDT



) -- Treasury prices fell while stock futures edged higher Friday after the government reported that U.S. nonfarm payrolls

rose by 162,000

in March.

Shortly before noon, the price of the benchmark 10-year note fell 18/32 to 97 14/32, while the yield was up 5.8 basis points at 3.94%. (When bond prices rise, yields fall and vice versa.) Before the government release, the yield on the 10-year note was quoted at 3.87%.

About 45 minutes after the government released the employment report,

S&P 500

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futures were quoted 3.60 points higher at 1,177.30, while

Dow Jones Industrial Average

futures were up 35.00 points at 10,895.00.

Although the increase in payrolls was less than the 184,000 consensus of economists compiled by, it still marks a significant gain and -- taking into account that the government Friday revised January's payrolls to a positive number -- it is only the third payroll increase since December 2007.

The unemployment rate remained unchanged at 9.7%, in line with expectations.

A healthier labor market is generally viewed as negative for Treasuries because it points to economic strength, which can prompt the

Federal Reserve

to raise interest rates. It also reduces the attractiveness of Treasuries as a safe-haven investment.

The bond and futures markets were open Friday morning, but U.S. stock markets were closed in observance of Good Friday.

This article was written by a staff member of