(Adds TREASURIES tag to headline) By Ross Kerber and Arjun Panchadar BOSTON/BENGALURU, Dec 6 (Reuters) - U.S. Treasury yields rose on Friday after the Labor Department reported job growth increased by the most in 10 months in November. The benchmark 10-year yield was 4 basis points higher at 1.8346% in late morning trading, reflecting greater investor appetite for risk. Analysts said the jobs report showed an underlying strength in the U.S. economy that offset a series of mixed signals from other reports earlier in the week. U.S. stocks also advanced. "Basically the market is very positive on this news because what it does is, it confirms a strong economy even though we have seen a little weakness come in," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. "This is going to throw a wrench into the argument that the economy is slowing down. Companies don't hire if the economy is slowing down, companies go the other way," Bakhos said. The Labor Department's closely watched monthly employment report showed steady wage gains and the unemployment rate falling back to 3.5%. It was seen as validating the U.S. Federal Reserve's decision last month to cut interest rates for the third time this year but to signal a pause in its easing cycle. The 10-year yield rose as much as 6.9 basis points earlier on Friday after the jobs report. The retrenchment may have reflected a cooler view that the report could have shown strong seasonal-but-temporary hiring, or be subject to downward revisions later, said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. "The forward-looking implications of today's labor report were not many," he said. The two-year yield, which typically moves in step with interest rate expectations, was up 3.3 basis points to 1.6149% on Friday morning. December 6 Friday 11:14AM New York / 1614 GMT Price Price Current Net Yield % Change (bps) Three-month bills 1.5 1.5305 -0.015 Six-month bills 1.5175 1.5545 0.002 Two-year note 99-199/256 1.6149 0.033 Three-year note 99-250/256 1.6331 0.038 Five-year note 99-56/256 1.6642 0.044 Seven-year note 99-8/256 1.7732 0.045 10-year note 99-60/256 1.8346 0.040 30-year bond 102-60/256 2.2717 0.027 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 1.50 0.00 spread U.S. 3-year dollar swap -2.50 0.00 spread U.S. 5-year dollar swap -3.50 -0.50 spread U.S. 10-year dollar swap -7.25 0.00 spread U.S. 30-year dollar swap -33.00 0.75 spread (Reporting by Ross Kerber in Boston; additional reporting by Arjun Panchadar in Bengaluru; Editing by Chizu Nomiyama and Jonathan Oatis)
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