treasury yields plummeted on friday after us economic data pointed to signs of slowing wage growth and broadening weakness in the economy sending the policysensitive 2year rate into its biggest oneday decline since november   meanwhile the 30year rate had its largest weekly drop in almost three years   the yield on the 2year treasury tmubmusd02y fell 191 basis points to 4260 from 4451 on thursday that’s the biggest oneday decline for the 2year rate since nov 10 based on 3 pm figures from dow jones market data for the week the yield dropped 139 basis points   the yield on the 10year treasury tmubmusd10y fell 15 basis points to 3570 versus 3720 thursday afternoon it declined 256 basis points this week   the yield on the 30year treasury tmubmusd30y declined 105 basis points to 3692 from 3797 late thursday it declined 242 basis points this week the largest oneweek decline since the period that ended on march 6 2020 data released on friday showed the us created 223000 new jobs in december to mark the smallest increase in two years though economists had expected a net 200000 positions to be created the unemployment rate slipped to 35 from 36 and hourly pay rose by a lessthanexpected 03 last month financial markets focused on the wage component of the jobs report as a possible sign that inflation pressures are easing and the federal reserve may be forced to eventually back off its interest rate hiking campaign traders priced in a morethan50 chance of smallerthanusual quarterofapercentagepoint rate hikes by the fed in february and march they see a 74 probability of such a move in february and 66 chance of another in march which would bring the fedfunds rate target to 475 to 5 according to the cme fedwatch tool traders also boosted the chances of rate cuts toward the end of the year in other us economic updates on friday the ism services sector index contracted below the 50 level for december and factory orders for november dropped 18 this second raft of data coming 90 minutes after december’s jobs report led to the 10year treasury yield falling below 36 as traders interpreted the ism number as a sign that the us economy is broadly weakening fed speakers throughout the day included atlanta fed president raphael bostic who said the central bank needs to stay the course and that december’s jobs report didn’t change his view on monetary policy and fed gov lisa cook who said “inflation remains far too high” what analysts are saying “the solid 223000 gain in nonfarm payrolls and dropback in unemployment to a 50year low in december will at face value do little to ease the fed’s concerns about resilient core services inflation that said the softer gain in average hourly earnings suggests wage growth is nevertheless slowing and we still think the labor market will weaken more markedly this year as the economy slips into recession” said andrew hunter senior us economist at capital economics