Treasury prices tumble as US jobless rate falls

The Standard & Poor’s (S&P)& 500 index rose for a fifth straight day yesterday while US Treasury prices tumbled after the American unemployment rate fell unexpectedly to a near four-year low.

The dollar advanced to a two-week high versus the yen and the euro gained as investors sold the US and Japanese currencies, which are often perceived as safe havens.

The US added 114,000 jobs last month, driving the jobless rate down to 7.8%, its lowest since Jan 2009, reported the labour department. Payroll gains for both July and August were revised higher.