The iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) reversed early gains Friday after the January nonfarm payrolls report came in weaker than expected. TLT was down 1% in afternoon trade.

Safe-haven Treasury bond ETFs declined in January as interest rates ticked higher and investors grew more confident on the U.S. economy. TLT lost about 3% for the month.

The U.S. added 157,000 jobs in January, less than expected, as the unemployment rate rose to 7.9%, the government said Friday.

The jobs report “deflated speculation that the Federal Reserve may stop buying Treasury bonds before the end of the year. The Fed’s steady buying over the past few years has been a main factor holding bond yields lower,” Dow Jones Newswires reported. “The question remains whether the bond market’s rebound can last long. Anxiety has grown over the past few weeks that an era of rising yields is poised to begin.” [Great Rotation from Bonds to Stocks?]

iShares Barclays 20+ Year Treasury Bond

Full disclosure: Tom Lydon’s clients own TLT.

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