Treasury prices were mostly unchanged prior to the payroll numbers but have headed south as a much better than expected report has caught many by surprise.  Nonfarm payrolls surged 243k vs predictions of a more modest 140k increase.  Private payrolls also increased more than expected to 257k, sending the unemployment rate down to 8.3% from December's level of 8.5%. 

Later this morning, a busy week of economic data is concluded with US factory orders report and the UM non-manufacturing index. 

Currently, the 10yr yield is at 1.915% (1.826% Thursday) and the 2-10 yield spread is at 168bps, 8bp steeper since yesterday morning.