Interest rates show little movement after government says job growth remains weak

Interest rates little changed after jobs report

NEW YORK — Interest rates posted modest moves in the bond market Friday after investors received another report that job growth is tepid.

The government said private employers added 83,000 jobs last month, which was below economists’ forecast for 112,000 jobs, but more than double the amount added in May. The unemployment rate dropped unexpectedly to 9.5 percent. Economists polled by Thomson Reuters were expecting it to rise to 9.8 percent.

Overall, the country shed 125,000 jobs last month. That reflects the loss of 225,000 temporary census jobs.

Job creation might be slower than economists had forecast, but it does indicate the economy is still expanding. That has helped interest rates avoid big moves Friday after touching their lowest levels since April 2009 earlier in the week.

Trading was quiet ahead of the long holiday weekend. U.S. markets will be closed Monday to observe Independence Day.

The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.98 percent in late trading from 2.95 percent Thursday. Many interest rates on consumer loans and mortgages are based on the yield of the 10-year note.

Its price fell 28.125 cents to $104.375.

Treasury yields fell sharply earlier in the week as investors flooded the bond market seeking safety. Many traders were concerned that the June jobs report would be worse than forecast.

In other trading, the yield on the two-year Treasury note was flat at 0.64 percent. Its price was unchanged at $99.96875.

The 30-year bond yield rose to 3.94 percent from 3.90 percent. Its price fell 81.25 cents to $107.50.

The yield on the three-month Treasury bill fell to 0.15 percent from 0.17 percent. Its discount rate was 0.16 percent.