US yields rise as wage growth backs bets on March Fed hike

US Treasury yields rose to fresh highs after the employment report for December showed wage growth remained hot, fanning inflationary concerns and solidifying March as the likely starting point for the first rate hike by the Federal Reserve.

While the 199,000 new jobs fell short of the expected 450,000 jump, wages for the past 12 months expanded at 4.7 per cent, eclipsing an expected pace of 4.2 per cent. The unemployment rate declined to 3.9 per cent, below the forecast of 4.1 per cent.

The rapid wage growth underscored the case for a more aggressive tightening by the Fed and capped a