Treasury yields spike as US smashes November jobs forecast

The US economy added 321,000 jobs last month, a figure well above the 230,000 rise that had been forecast and one which will bring forward expectations of a US rate hike.

The US Bureau of Economic Analysis also revised up October and September figures by 29,000 and 15,000 respectively, while the unemployment rate remained stable at 6.8%. Hourly earnings also showed a welcome sign of improvement, rising 0.4% on the month compared with the 0.2% which had been expected. US treasury yields climbed in response as investors begin to price in the possibility of an earlier than expected hike in the base rate of interest. Ten year yields rose eight basis points to 2.33%, with two year yields also rising sharply to 0.613%, their highest level since May 2011. ...