TREASURIES-US yields fall after payrolls data, seen as green light to Fed rate cut

(Updates with analyst quotes)

NEW YORK, Dec 6 (Reuters) -

U.S. Treasuries yield fell after the release of November payrolls data, as investors considered the numbers did not give a reason for the Federal Reserve to pause the rate cuts at its December 17-18 meeting.

The two-year U.S. Treasury yield fell 4.6 basis points to 4.1% after the release of November payrolls data. The two-year yield typically moves in step with interest rate expectations.

U.S. 10-year treasury yields also fell 2.5 basis points after the data to 4.157%. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a positive 5.7 basis points.

"It looks like there's no reason to worry about an imminent recession and there's no reason for the Fed to take a pause on cuts quite yet," said Brian Jacobsen, chief economist at Annex Wealth Management.

Nonfarm payrolls

increased by 227,000 jobs last month

after rising an upwardly revised 36,000 in October, the Labor Department said in its closely watched employment report on Friday. But it did not seem to signal a material shift in labor market conditions.

"Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling. This print doesn't kill the holiday spirit and the Fed remains on track to deliver a cut in December.", said Lindsay Rosner, head of multi sector investing at Goldman Sachs Asset Management. (Reporting by Tatiana Bautzer, Chuck Mikolajczak and Davide Barbuscia Editing by Mark Potter and Nick Zieminski)