* Confusion over revisions whipsaws yields
* North Korea, debt ceiling in focus
By Karen Brettell
NEW YORK, Sept 1 (Reuters) - U.S. Treasury yields were little changed on Friday, after briefly dipping because of confusion over revisions in the jobs report for August.
The U.S. Labor Department said on Friday that non-farm payrolls increased by 156,000 last month after rising by 189,000 in July.
Average hourly earnings rose 3 cents, or 0.1 percent, after advancing 0.3 percent in July, keeping the year-on-year gain in wages at 2.5 percent for the fifth consecutive month.
Confusion that wage growth was revised downward for the previous month initially sent yields lower. They reversed when it became clear that there was no such change.
“People initially looked at the hourly earnings, the revision down,” said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. “That’s been changed.
“I think it still sets up for the balance sheet reduction in September, and we’ll still see a 50/50 chance of a December rate hike.”
Benchmark 10-year yields fell as low as 2.10 percent after the jobs report before rising back to trade little changed at 2.13 percent.
Trading volumes have fallen in the past two weeks as investors are reluctant to buy Treasuries with yields near their lowest levels since November.
Rising tensions with North Korea and risks surrounding the U.S. government’s need to raise the debt ceiling next month are major concerns for investors.
Ten-year Treasury yields dropped as low as 2.086 percent on Tuesday, their lowest since Nov. 10, on safety buying after North Korea fired a ballistic missile over Japan’s northern Hokkaido island into the sea. (Reporting by Karen Brettell in New York; Editing by Lisa Von Ahn) )