NEW YORK, March 9 (Reuters) - U.S. Treasury yields hit session peaks after data showed the world’s largest economy created far more jobs than expected in February, although the rise in yields could be limited by slowing wage inflation.
The report suggested the Federal Reserve was still on track to raise interest rates at least three times this years.
U.S. nonfarm payrolls expanded by 313,000 jobs last month, boosted by the largest gain in construction jobs since 2007, the Labor Department said on Friday. The increase in payrolls last month was the biggest since July 2016.
But the average hourly earnings, a closely watched inflation metric, edged up four cents, or just 0.1 percent, to $26.75 in February, a slowdown from the 0.3 percent rise in January. That lowered the year-on-year increase in average hourly earnings to 2.6 percent from 2.8 percent in January.
U.S. benchmark 10-year yields hit session highs of 2.903 percent, up from Thursday’s 2.866 percent.
U.S. 30-year yields also touched the day’s peaks at 3.171 percent, compared with 3.132 percent late on Thursday.
Reporting by Gertrude Chavez-Dreyfuss Editing by Bernadette Baum