Treasuries showed a modest move to the downside during trading on Wednesday, extending the notable decline seen in the previous session.
Bond prices climbed off their worst levels going into the close but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.4 basis points to 0.948 percent.
The modest weakness among treasuries may partly have reflected continued about potential coronavirus vaccines.
The U.K. has approved the vaccine candidate developed by Pfizer (PFE) and BioNTech (BNTX), with the vaccine expected to be rolled out next week.
Traders also seem optimism lawmakers in Washington will reach an agreement on a new fiscal stimulus bill as both parties issue new proposals.
Meanwhile, the markets did not pay much attention to a report from payroll processor ADP showing private sector employment in the U.S. increased by less than expected in the month of November.
ADP said private sector employment rose by 307,000 jobs in November after climbing by an upwardly revised 404,000 jobs in October.
Economists had expected employment to increase by 410,000 jobs compared to the addition of 365,000 jobs originally reported for the previous month.
“While November saw employment gains, the pace continues to slow,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
On Friday, the Labor Department is scheduled to release its more closely watched employment report, which includes both public and private sector jobs.
Reports on weekly jobless claims and service sector activity may attract attention on Thursday, although trading may be somewhat subdued ahead of the monthly jobs report.
The material has been provided by InstaForex Company – www.instaforex.com