Strong job data end an already bad week.

WASHINGTON -- A disastrous Friday, thanks to a strong employment report and a weak dollar, ended a disastrous week for Treasury securities.

In late trading Friday, the benchmark 30-year bond was quoted down 22/32 at a price of 92 17/32, pushing the yield up to a three-year high of 8.17%. Bond yields rose 20 basis points during the week as traders couldn't sell their souls for bad economic news, which would have bolstered prices.

The short end deteriorated as well. Yields on both three- and six-month bills rose eight basis points Friday, the worst day of the week, to 5.33% and 5.88%, respectively.

The Labor Department reported that nonfarm jobs rose 194,000 in October, slightly less than expected, but almost every other aspect of the report showed the economy was cooking better than ever. The unemployment rate fell to a four-year low of 5.8%, average hourly and weekly earnings grew, and the average workweek climbed.

"It was an incredibly strong report," said James Hale, senior fixed-income strategist with MMS International. "It was very, very scary for bonds."

Also, despite two apparent interventions by the Federal Reserve, the dollar lost a little more ground against the Japanese yen and German mark.

Hale said the yield curve is now fully priced for a 50-basis point hike in the federal funds rate by the Fed in mid-November and an additional half-point tightening in December.

-- Dean Patterson Treasury Market Yields Previous Previous Friday Week Month 3-Month Bill 5.31 5.13 5.016-Month Bill 5.85 5.64 5.541-Year Bill 6.34 6.13 5.982-Year Note 7.02 6.80 6.633-Year Note 7.29 7.03 6.935-Year Note 7.70 7.47 7.337-Year Note 7.86 7.63 7.5110-Year Note 8.01 7.78 7.6830-Year Bond 8.15 7.95 7.90 Source: Cantor, Fitzgerald / Telerate

Stats

Stock Market: The Dow Jones Industrial Average fell 38.36 points Friday, to close at 3807.52.

Foreign Exchange: In late New York trading Friday, the dollar was quoted at 97.40 Japanese yen and 1.5142 German marks.

Commodities: The Commodity Research Bureau's index closed up 0.24 point Friday, at 234.16.

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