Most Treasurys Up On Jobs Data; Yield Spread Widens To Record
Most Treasury prices were higher late Friday, with the two-year note's yield dipping below 1% after a key jobs report doused some optimism of an economic recovery. The two-year note's yield spread with the 30-year maturity widened to a record 374 basis points. A weak labor market has been one of the major reasons for the Federal Reserve to keep its main policy rate at an ultralow level near zero over the past 12 months. Friday, Federal Reserve Bank of Boston President Eric Rosengren said unemployment will take a long time to come down, suggesting the central bank is unlikely to raise interest rates soon.