Againstthe yen the dollar JPY was down 0

Chevron stock fell 1.4 percent, while Apple shares shed 1.8percent. In Europe, the FTSEurofirst 300 index .FTEU3 of topshares fell 0.5 percent to close at 866.95 points, ending thefirst full week of trading in 2009 with a 1.2 percent gain U.S. and euro zone government debt prices rose after thedismal U.S. jobs report, and grim European manufacturing datafor November signaled the region is also sinking further intorecession. Expectations the tough employment environment will lead toa very large government stimulus package and a vast issuance ofnew government debt reined in U.S bond price gains.

"The severity of the decline (in payrolls) indicates thatgovernment is going to step up spending, which is going to keepdeficits very high," said Mary Ann Hurley, vice president offixed-income trading at D.A Davidson & Co in Seattle The benchmark 10-year U.S. Treasury note US10YTRR rose14/32 in price to yield 2.39 percent The 2-year U.S. Treasurynote US2YTRR gained 5/32 in price to yield 0.76 percent U.S. "The overhang of bearish crude inventory continues to bewhat is pressuring crude futures," said Dominick Chirichella,senior partner at the Energy Management Institute in PointPleasant, New Jersey. The dollar rallied in volatile trading, with investorsrelieved that the U.S jobs report was not as dismal as manyhad feared. Traders had positioned themselves for a gruesome non-farmpayrolls number following a U.S. private sector jobs reportearlier this week showing hefty losses of 693,000.

Againstthe yen, the dollar JPY was down 0.81 percent at 90.33. In Europe, data showed German industrial output slumped 10percent on the year, its fastest pace of decline since 1993,while in France it fell a record 9 percent and in Spain by 15.1percent. "The financial crisis has pushed the German industry into acondition of shock and awe," said Carsten Brzeski, economist atING Financial Markets. "In terms of economic growth, the fourthquarter of 2008 will make history as the worst quarter ever." The euro EUR fell 2.22 percent to $1.342.