The Labor Department reported a stronger-than-expected monthly employment report; less than what traders expected but greater than what economists expected.

Investors were hoping that a robust jobs figure would boost sentiment towards stocks but were worried that the better-than- expected payrolls number could prompt the Federal Reserve to step up its interest rate hikes.

Treasury yields fell.

The benchmark 10-year note gained 7/32 of a point to yield 4.36 percent, down from 4.38 late Thursday.

The 30-year bond rose 11/32 of a point to yield 4.72 percent, down from 4.74 late Thursday.
Today’s other news hasn’t had much of an impact on the bond market or mortgage rates. The Commerce Department said that factory orders rose 0.2% when it was expected to remain unchanged from December’s levels. The University of Michigan’s revision to their Index of Consumer Sentiment revealed a 94.2 reading compared to the previous estimate of 94.2 that was announced two weeks ago.

"(Friday's data) hasn't met the most bullish expectations, but it is nonetheless a pretty positive number," Richard Franulovich, senior currency strategist at Westpac Banking Corp., told Reuters.