WASHINGTON (dpa-AFX) - Treasuries gave back ground after an early advance but managed to move back to the upside over the course of the trading session.
After pulling back near the unchanged line, bond prices climbed back firmly into positive territory in early trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, decreases by 3.7 basis points to 3.731 percent.
The ten-year yield closed lower for the third consecutive session, tumbling to its lowest closing level in over a year.
The continued strength among treasuries came following the release of a report from payroll processor ADP showing private sector employment in the U.S. increased by much less than expected in the month of August.
ADP said private sector employment rose by 99,000 jobs in August after climbing by a downwardly revised 111,000 jobs in July.
Economists had expected private sector employment to jump by 145,000 jobs compared to the addition of 122,000 jobs originally reported for the previous month.
'Tomorrow's payroll report could be softer than expected given the slowdown in ADP estimates,' said Jeffrey Roach, Chief Economist for LPL Financial. 'If the payroll report surprises investors and comes in weaker than expected, the likelihood of a 50 basis point cut increases at the upcoming Fed meeting.'
On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of August, which includes both public and private sector jobs.
Economists currently expected employment to climb by 160,000 jobs in August after rising by 114,000 jobs in July.
The unemployment rate is expected to edge down to 4.2 percent in August after rising to 4.3 percent in July, reaching its highest level since October 2021.
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