June 1, 2012 / 11:13 AM / 5 years ago

GLOBAL MARKETS-Weak U.S. jobs growth spurs flight to safety

LONDON, June 1 (Reuters) - U.S. Treasury bond yields hit fresh record lows and the dollar rose sharply on Friday after data showing weak U.S. job growth in May pushed investors to safe havens on an increasingly gloomy global economic outlook.

Employers created 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase by 150,000.

Weak Chinese and euro zone data earlier on Friday had already encouraged a flight from riskier assets and into government debt.

Yields on the U.S. 30-year bond hit the lowest on record going back more than two centuries according to Reuters data, for a second day. Ten-year bond yields also hit record lows.

The dollar hit 21-month highs against an index of currencies and the euro fell below $1.23 to its lowest in nearly two years.

U.S. stock futures pointed to a slide at the open, with futures for the S&P 500, Dow Jones and Nasdaq 100 down between 1.6 and 2.0 percent.

The MSCI world equity index fell nearly 1 percent to hit the year’s lows.

Oil lost more than $3 dollar a barrel, with brent crude falling further below the psychologically key $100 a barrel level to $98.27.

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