TREASURIES-U.S. yield curve steepens as wages increase, jobs growth disappoints - NewsBreak

(Adds quote, next week's auctions, bill rates, updates prices) By Karen Brettell NEW YORK, Sept 3 (Reuters) - Longer-dated U.S. Treasury yields rose on Friday and the yield curve steepened after data showed wages increased more than expected in August even as jobs growth slowed. Average hourly earnings rose 0.6% in the month, more than the 0.3% economists expected. Nonfarm payrolls missed expectations, however, with an increase of 235,000 jobs amid a softening in demand for services and persistent worker shortages as COVID-19 infections soared. Economists polled by Reuters had forecast nonfarm payrolls increasing by 728,000 jobs. There is "more evidence of inflation that may not be as transitory as the Fed hopes it will be, or thinks it will be," said Zachary Griffiths, an interest rate strategist at Wells Fargo in Charlotte, North Carolina. "You have the front-end responding to a Fed that's going to be on hold for perhaps longer, while they are going to have to contend with this infla