Treasury yields jumped on Friday after the US labour market surprised on the upside once again.

The US economy added 255,000 jobs in July, the Labor Department said on Friday, easily beating forecasts for a 180,000 gain.

Expectations that continued strength in the labour market could prompt the Federal Reserve to raise interest rates for the first time since December before the year ends sent US bond yields sharply higher.

Yields on the 10-year note jumped 3.8 basis points to 1.537 per cent while those for the 2 year note rose 4.3bps to 0.686 per cent.

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