U.S. Treasury yields hold ground before employment data

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U.S. Treasury yields were mostly unchanged on early Wednesday’s trade before a the monthly report on private sector employment from ADP.

What are Treasurys doing?

The 10-year Treasury note yield
TMUBMUSD10Y,
1.720%

was down 0.2 basis point to 1.724%, a day after touching its highest level in around 14 months, while the 2-year note rate
TMUBMUSD02Y,
0.152%

edged 0.2 basis point higher to 0.150%. The 30-year bond yield
TMUBMUSD30Y,
2.392%

slid 1.4 basis points to 2.382%. Bond prices move inversely to yields.

What’s driving Treasurys?

Investors will eye the March employment report from Automatic Data Processing Inc. at 8:30 a.m. ET, before the U.S. Labor Department’s payrolls and unemployment data on Friday. MarketWatch-polled analysts are forecasting private-sector employment gains of 525,000 in March.

In other data, the pending home sales index for February will draw attention at 10 a.m.

The Biden administration’s $2 trillion infrastructure plan will also be closely scrutinized. The first phase of his “Build Back Better” package will be unveiled Wednesday, and will funnel spending into transportation, public health systems and innovation research.

The immense fiscal stimulus deployed by Congress so far has helped push long-term bond yields to their highest levels in over a year this week.

What did market participants say?

“Over the coming seven-weeks, a notable acceleration in economic growth likely may be evident for the March and April economic data releases,” said John Herrmann, a rates strategist at MUFG.



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