U.S. Treasuries Advance Then adds fewer jobs than expected in November

Treasuries rose after U.S. employers added fewer jobs in November forecast of economists, reigniting concern the pace of economic recovery will be slow.

yields ten-year note fell from the highest level since July yesterday reached the Labor Department said the economy created 39,000 jobs, below the median of a survey.

"I see nothing good in numbers," said John Briggs, government bond strategist U.S. at the Royal Bank of Scotland, RBS Securities unit in Stamford, Connecticut, one of the 18 primary dealers trade with the Federal Reserve. "Despite the stronger manufacturing data, which could be a reflection of the weakness of the dollar in recent months, there are a lot of wood to chop in the field of employment and firms seem to be reluctant to continue to recruit" .

The yield on the 10-year bond fell seven basis points, or 0.07 percentage point to 2.92 percent at 8:46 am in New York, according to BGCantor Market Data. The price of the security of 2,625 percent due November 2020 rose 18/32, or $ 5.63 per $ 1,000 face amount, to 97 14/32.

Payrolls increased less than the most pessimistic forecast of economists surveyed by us, after a revised gain of 172,000 last month, the Labor Department figures showed today in Washington.
The unemployment rate rose to 9.8 percent, the highest since April, while the hours worked and incomes stagnated.

Fed officials on November 12 began a round of $ 600,000,000,000 second asset purchases to support the growth of the economy and reduce unemployment and prevent deflation.

Employment days

The drop in payroll forecast comes after recent data pointed to an improving economy. The index of pending home resales rose 10 percent in October after falling 1.8 percent in September, the National Association of Realtors said yesterday in Washington. The median forecast in a survey called for a decline of 1 percent. The group's data back to 2001.

The Federal Reserve said on 01 December the economy was strong in 10 of its 12 regions as recruitment of the improvement, expansion of manufacturing and retailers anticipated a holiday shopping season stronger.

Goldman Sachs Group Inc. on December 01 raised its forecast for U.S. Gross domestic product growth next year to 2.7 percent from 2 percent. The U.S. economy will expand 3.6 percent in 2012, according to the report sent to clients of Goldman Sachs.

Gross domestic product grew at a rate of 2.5 percent per year between July and September, according to the Department of Commerce. The rate was 1.7 percent in the second quarter and 3.7 percent in the first.

Performance Forecast

U.S. sales retail rose 1.2 percent in October, above the forecast of a 0.7 percent increase based on the median estimate of economists polled by us, the Commerce Department said that 15 November.

The yield on the 10 years end the year at 2.56 percent, according to the median forecast in a survey of 63 banks and securities firms, with recent estimates given more weight. The yield on the two years is expected to end 2010 at 0.5 percent.