US employers hired more workers than expected in November and the jobless rate fell to a five-year low of 7.0 per cent,raising chances the Federal Reserve will start ratcheting back its bond-buying stimulus sooner rather than later. Non-farm payrolls increased by 2,03,000 new jobs last month,the US Labor Department said on Friday.
US stocks rallied and the dollar rose against the yen on the data. US benchmark Treasury yields hit a three-month high as traders increased bets the Fed could reduce its bond purchases as early on December 17-18. The central bank has been buying $85 billion in Treasury and mortgage-backed bonds each month. Despite the jobs data,many economists said the central bank was still likely to hold off reducing its purchases until January or March to ensure the economy was on solid ground.