"Treasuries Tumble, Fed Hike Feared" -- Yahoo

[On the Road]

NEW YORK (Reuters) - Treasuries prices tumbled on Friday, lifting yields to two-month highs, as U.S. jobs data topped all expectations and ratcheted up the risk of an early rate hike from the Federal Reserve.

The figures effectively shattered a seven month-long bull run for the bond market and drove benchmark 10-year yields (US10YT=RR) up 23 basis points to 4.12 percent, a rise that will also pull U.S. mortgage rates sharply higher.

"Wow! We finally got our job growth, and it came all at once," said an excited Stephen Stanley, chief economist at RBS Greenwich Capital. He noted that upward revisions to previous data meant employment growth was now averaging 171,000 jobs a month this year.

"If job growth in April and May remain on the path seen in the first three months of the year, I would say the Fed tightens on June 30," added Stanley. "Certainly, my old forecast of August seems like the latest possible timing, unless this payroll report proves to be a fluke."

http://biz.yahoo.com/rb/040402/markets_bonds_3.html