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.

Policy makers will see one more set of labor statistics before they meet in December to decide whether to lift interest rates for the first time since 2006. Fed Chair Janet Yellen said this week that a move next month is a "live possibility" if economic data hold up.