Following the release of the March employment data, US Treasury yields climbed, and US index futures closed slightly higher. The data indicated that the labour market remains tight, but largely met market expectations.
Nonfarm payrolls increased by 236,000 jobs, slightly below the expected 239,000, as reported by economists surveyed by Reuters. However, there was a positive revision for February, with 326,000 jobs added instead of the previously reported 311,000.
Additionally, the unemployment rate dipped to 3.5% from 3.6% in the prior month.
After the US jobs report, the US stock index futures reversed losses and moved higher, while the dollar strengthened and US Treasury yields rose on increased expectations of a Federal Reserve rate hike at its May meeting.
Alex Coffey, the senior trading strategist at TD Ameritrade in Chicago, noted that the headline number matched consensus estimates, and there were no surprises in the data. "We sort of have a situation where this doesn’t change the game, it allows us to continue on to the next data point and that lack of surprise is seen as optimism," he added.
Meanwhile, the US stock market is closed until Monday due to the Good Friday holiday, and European markets are also closed on both Friday and Monday.
MSCI's gauge of stocks across the globe shed 0.01%. E-mini futures for the S&P 500 closed up 0.23% following the data.
In Asia, Japan's Nikkei share average rose on Friday, trimming its weekly decline, as a weaker yen and higher Wall Street close overnight boosted sentiment ahead of the payrolls report.
Still, the jobs report heightened expectations the Fed will raise rates at its next meeting, with the market pricing in a 69% chance for a 25 basis point rate hike, up from 49.2% on Thursday, according to CME's FedWatch Tool.
"While the headline number of payrolls is still elevated, hours are being cut with the index of aggregate weekly hours falling two months in a row," said Brian Jacobsen, senior investment strategist at Allspring Global Investments in Menomonee Falls, Wisconsin.
"The employment situation has gone from red hot to merely smoldering."
Benchmark 10-year notes were up 8.9 basis points to 3.379%, from 3.29% late on Thursday.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was up 15.3 basis points at 3.974%.
The dollar index rose 0.167%, with the euro down 0.13% to $1.0906.
(with inputs from agencies)
(Edited by : Priyanka Deshpande)
