NEW YORK, June 1 (Reuters) - U.S. Treasury yields climbed to the session peaks on Friday after data showed the world’s largest economy created more jobs than expected in May, cementing expectations of at least two more rate hikes by the Federal Reserve.
U.S. non-farm payrolls increased by 223,000 jobs last month, data showed. Data for March and April was revised to show the economy creating 15,000 more jobs than previously reported.
Also average hourly earnings rose eight cents, or 0.3 percent last month after edging up 0.1 percent in April, suggesting inflation was creeping higher.
After the report, U.S. 10-year yields hit session highs of 2.926 percent, from 2.9168 percent just before.
U.S. two-year yields also touched the day’s peak of 2.488 percent, from 2.463 percent before the data’s release.
Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama