The 10-year note climbed 21/32 to 100-03/32 for a yield of 4.49%, while the 30-year bond soared 39/32 to 110-04/32 for a yield of 4.67%.
News hit that the revised third quarter unit labor costs index was revised to up 1.8% from the 2.8% reported last month. Further, Productivity growth in the nonfarm business sector was revised upward to 4.7% in the third quarter, in line with the revision to third quarter Gross Domestic Product announced last week.
The 30-year bond yield is down to 4.715%, while the 2-year yield is down to 4.429%.
S&P's David Wyss says the revision implies a 1.0% drop in unit labor costs, showing no inflation in the economy.
"Rather than focus on the slowdown in nonfarm unit labor costs, we would draw attention to the year-over-year inflation rate on the nonfarm implicit price deflator within this report rising to a 14-year high in the third quarter," says Bear Stearns John Ryding.