Treasuries plunged after a government report showed the pace of U.S. job growth accelerated in October, bolstering speculation that the economy will be strong enough for the Federal Reserve to raise interest rates next month.

Yields on two-year Treasuries rose to the highest since May 2010 after the Labor Department said the nation gained 271,000 jobs last month, following an increase of 137,000 in September. The median forecast in a Bloomberg News survey of economists was for an addition of 185,000.

“At least in the near term everyone’s going to be positioning for a December rate hike and perhaps another one in the first quarter,” said Richard Schlanger, who helps invest $30 billion in fixed-income securities as vice president at Pioneer Investments in Boston.

Read the article “Treasuries Tumble as Job Gains Back Case for Fed Rate Increase” on bloomberg.com.