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U.S.10Yield hit 1.62% - Dollar firmly near 3month highs

10-year Treasury yield jumps to 2021-high of 1.62% before pulling back

The 10-year U.S. Treasury yield jumped Friday after the February jobs report topped expectations, sending the benchmark yield to its highest level this year, before retreating as the day wore on.

The yield on the 10-year Treasury note was trading up at 1.56% at around 4:20 p.m. ET after hitting an intraday high of 1.626%. The yield on the 30-year Treasury bond fell to 2.29%. Yields move inversely to prices.

Dollar jumps as U.S. jobs growth beats expectations

The dollar jumped on Friday after data showed jobs growth beat expectations in February, backing up the view of Federal Reserve officials who have said that a recent rise in U.S. government bond yields is justified by an improving economic outlook.

The jobs improvement came amid falling new COVID-19 cases, quickening vaccination rates and additional pandemic relief money from the government, putting the labor market recovery back on firmer footing and on course for further gains in the months ahead.

The dollar index jumped as high as 92.201, the highest since Nov. 25, before retracing back to 91.965, still up 0.36% on the day. The euro fell as low as $1.1892, the lowest since Nov. 26, before bouncing back to $1.1915, down 0.49% on the day.

Benchmark 10-year Treasury yields hit a one-year high of 1.625%, and were last at 1.551%.

St. Louis Federal Reserve President James Bullard said on Friday that the run-up in yields reflects improving expectations for the economy.

The yen plumbed a nine-month low of 108.63 yen per dollar, before bouncing back to 108.33.

Risky currencies including the Australian dollar also weakened against the greenback. The Aussie was last down 0.46% at $0.7683. It has dropped from a three-year high of $0.8007 last week.

Sterling briefly fell below $1.38 to a three-week low. It was last down 0.42% at $1.3838.

In the cryptocurrency market, bitcoin rose 1.83% to $48,893. Ethereum dropped 0.84% to $1,525.

Reference: CNBC, Reuters