The Treasury market was well bid on Friday, after April’s official jobs report (http://www.marketwatch.com/story/us-jobs-creation-springs-back-in-april-with-223000-gain-2015-05-08)came in solid but not as robust as expected.

“The good news is that the 223,000 nonfarm payroll jobs growth was in line with the trend we had in place before March. The bad news is that March’s already disappointing 126,000 jobs growth was revised downward to 85,000,” said Jeff MacDonald, director of fixed-income strategy for Fiduciary Trust Company International.

The price action in the Treasury market reflected the mixed numbers.

Early in the morning, the market was still under the effect of the selling momentum (http://www.marketwatch.com/story/treasury-yields-edge-higher-as-european-bond-selloff-overshadows-weak-adp-2015-05-06) that was evident in bond markets all over the world over the past week, with falling prices pushing the 10-year benchmark yield up to a session high of 2.193%.

But the mixed jobs report sparked buying, driving Treasury prices higher and yields down. Though the market changed direction a few times, overall a falling yield trend was evident, while the dollar got hit (http://www.marketwatch.com/story/pound-taps-155-as-conservatives-expected-to-win-uk-election-2015-05-08) and stocks moved higher.

On balance, the yield on the 10-year Treasury note , fell six basis points to 2.124% Friday, according to data from Tradeweb. The yield on the two-year note declined 5.5 basis point to 0.576%, and the 30-year bond yield fell 3.1 basis points to 2.877%.

Bond yields rise as prices fall.

Overall, the report supported the view expressed in the Federal Reserve’s April policy statement (http://www.marketwatch.com/story/job-report-gives-fed-green-light-to-move-in-september-2015-05-08)that soft growth in the first quarter was due to “transitory factors”, analysts said.

According to MacDonald, this keeps the Fed on pretty much the same data-dependent course it was already on for the first interest-rate increase in almost a decade.

As the Fed has signaled that the liftoff date and the pace of said increase will depend on two key elements, employment and inflation, market watchers are now turning their attention to the next round of U.S. economic data that will clarify whether the Fed’s 2% inflation target is anywhere close.

“We suspect policy makers are confident in the employment and therefore consumer spending outlook, but inflation remains a bigger concern,” Guy LeBas, chief fixed income strategist at Janney, said in a note.

“So long as the CPI/PCE play ball in the face of a stronger dollar, we’re confident that policy tightening can begin in September,” LeBas added.

Meanwhile, the eurozone’s bond market, which underwent a massive selloff over the past two weeks, seemed to recover on Friday, with rising prices that drove the benchmark 10-year German bund yield down 5.3 basis points to 0.549%.

As the U.S. Treasury market is highly correlated with the eurozone bond market, earlier in the week, the selloff in Europe led Treasury yields to “rise in sympathy” (http://www.marketwatch.com/story/treasury-yields-rise-on-strong-ism-amid-eurozone-bond-selloff-2015-05-05).