WASHINGTON (dpa-AFX) - Treasuries moved notably higher during trading on Wednesday, extending the upward move seen over the course of the previous session.
Bond prices showed a strong move to the upside early in the session and remained firmly positive throughout the day. Subsequent, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 9.1 basis points to 4.422 percent.
The ten-year yield added to the 3.0 basis point dip seen on Tuesday, falling to its lowest closing level in well over a month.
The continued strength in the bond market came after the Treasury Department said its current auction sizes leave it well positioned to address potential changes to the fiscal outlook.
Based on current projected borrowing needs, the Treasury said it anticipates maintaining long-term securities auction sizes for at least the next several quarters.
The advance by treasuries also came as traders digest some mixed U.S. economic data.
The Institute for Supply Management released a report showing service sector growth in the U.S. unexpectedly slowed modestly in the month of January.
The ISM said its services PMI dipped to 52.8 in January from a revised 54.0 in December. While a reading above 50 still indicates growth, economists had expected the index to inch up to 54.3 from the 54.1 originally reported for the previous month.
Meanwhile, payroll processor ADP released a separate report showing private sector employment in the U.S. increased by more than expected in the month of January.
ADP said private sector employment climbed by 183,000 jobs in January after rising by an upwardly revised 176,000 jobs in December.
Economists had expected private sector employment to rise by 150,000 jobs compared to the addition of 122,000 jobs originally reported for the previous month.
A report on weekly jobless claims may attract attention on Thursday along with preliminary readings on labor productivity and costs in the fourth quarter of 2024.
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