After moving notably higher over the past few sessions, treasuries gave back ground during the trading day on Wednesday.
Bond prices moved to the downside early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 5.5 basis points to 1.470 percent.
The ten-year yield closed higher for the first time in four sessions but remained below the one-year closing high of 1.518 percent set last Thursday.
The pullback by treasuries came as optimism about the coronavirus vaccine rollouts reduced the appeal of safe havens like bonds.
President Joe Biden said Tuesday the U.S. will have enough vaccine supply for every adult in America by the end of May.
Biden cited the emergency use authorization issued for Johnson & Johnson’s (JNJ) vaccine as well as a collaboration between J&J and Merck (MRK) to expand production of the single-dose vaccine.
The optimism about vaccines overshadowed some disappointing economic data, including 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 117,000 jobs in February after climbing by an upwardly revised 195,000 jobs in January.
Economists had expected employment to increase by 177,000 jobs compared to the addition of 174,000 jobs originally reported for the previous month.
On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.
The Institute for Supply Management also released a report showing a slowdown in the pace of growth in U.S. service sector activity in the month of February
The ISM said its services PMI dropped to 55.3 in February from 58.7 in January, although a reading above 50 still indicates growth in the sector. Economists had expected the index to come in unchanged.
The pullback by the services PMI came after the index reached its highest level since hitting 58.8 in February of 2019.
Late in the trading day, the Federal Reserve’s Beige Book said economic activity expanded modestly from January to mid-February for most Fed districts.
A report on weekly jobless claims may attract attention on Thursday, although trading activity is likely to be somewhat subdued ahead of the release of the monthly jobs report on Friday.
The material has been provided by InstaForex Company – www.instaforex.com