Jan 10 (Reuters) - Longer-dated U.S. Treasury yields

jumped to their highest levels since November 2023 on Friday

after data showed employers added 256,000 jobs in December, far

surpassing economists' expectations, while the unemployment rate

fell.

Employers were expected to have added 160,000 jobs during

the month. The unemployment rate dipped to 4.1%, below forecasts

for 4.2%.

"This report will fuel yields even higher. The labor market

is not showing any signs of weakening," said Peter Cardillo,

chief market economist at Spartan Capital Securities in New

York.

Benchmark 10-year Treasury yields reached 4.79%

while 30-year yields jumped to 5.005%, both the

highest since November 2023.

Interest rate sensitive two-year yields rose to

4.388%, the highest since July 2024. The yield curve between

two-year and 10-year notes flattened by around 1

basis point on the day to 41.8 basis points.

Traders are now betting the Federal Reserve will wait until

at least June to reduce its policy rate. Before the monthly jobs

report, traders had seen the Fed cutting as early as May with

about a 50% chance of a second rate cut before the end of the

year.