The Labor Department said on Friday nonfarm payrolls fell by 33,000 jobs last month amid a record drop in employment in the leisure and hospitality sector. But the unemployment rate fell to 4.2 percent, the lowest since February 2001.

The average hourly earnings, meanwhile, increased 12 cents or 0.5 percent in September after rising 0.2 percent in August.

In early trading, the benchmark 10-year US Treasury note yield rose to its highest since July 11 and was last at 2.387 percent.

The 30-year yield also climbed to its strongest level since August 1, and last traded at 2.916 percent.