Short-dated U.S. government bond yields fell sharply on Friday after the release of the monthly payrolls report, with the two-year Treasury yield sliding 20 basis points to 3.76%, its steepest single-day decline since April. Earlier in the session the note had already been on track for a double-digit drop, and traders extended the move as the data filtered through the market. Longer-dated Treasuries were steadier. The benchmark 10-year yield finished the day near 4.356%, little changed from pre-report levels, while the 30-year yield was last quoted around 4.86%, roughly 10 basis points lower than mid-week. The shift in U.S. rates rippled across other sovereign markets. Germany’s two-year bund yield slipped three basis points to 1.93%, and the U.K.’s five-year gilt yield eased two basis points to 3.982%, its lowest reading since 7 July. Traders said the moves reflect a reassessment of the near-term outlook for Federal Reserve policy in light of the labor-market figures, with the front end of the curve bearing the brunt of the repricing.