The dollar took a beating on the jobless news. Also, the possibility of the Bank of Japan intervening -- buying dollars and selling yen -- also spooked dollar traders and subsequently lifted Treasury prices. Finally, blizzard-like conditions in New York may have contributed to thin trading late in the afternoon.
The Fed meets next week. Fed fund futures imply about 25% odds now of a quarter-point rate hike in March, down from 50% prior to the payrolls data and about 100% as recently as last week.