WASHINGTON (dpa-AFX) - Following the downturn seen over the course of the previous session, treasuries saw further downside during trading on Wednesday.
Bond prices regained some ground after seeing early weakness but pulled back firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.5 basis points to 4.265 percent.
The weakness among treasuries came as traders continued to cash in on recent strength in the bond market, with the ten-year yield continuing to rebound after hitting its lowest intraday level since October during trading on Tuesday.
Treasuries staged a recovery attempt in late-morning trading but moved back to the downside after a report from Bloomberg said the Trump administration was considering a one-month delay for automakers from newly imposed tariffs on Mexico and Canada.
The White House later confirmed the exemption for automakers, noting the move came after Trump spoke with heads of General Motors (GM), Ford Motor (F) and Stellantis (STLA).
White House Press Secretary Karoline Leavitt also said Trump was open to providing additional tariff exemptions.
Meanwhile, traders largely shrugged off a report from payroll processor ADP showing much weaker than expected private sector job growth in the month of February.
ADP said private sector employment rose by 77,000 jobs in February after climbing by an upwardly revised 186,000 jobs in January.
Economists had expected private sector employment to grow by 140,000 jobs compared to the addition of 183,000 jobs originally reported for the previous month.
Private sector job growth slowed to the lowest level since last July, with trade and transportation, health care and education, and information showing job losses, ADP said.
Developments on the tariff front may impact trading on Thursday along with reports on weekly jobless claims and the U.S. trade deficit.
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