WASHINGTON (dpa-AFX) - After giving back ground after an early advance and ending the previous session roughly flat, treasuries showed a strong move back to the upside during trading on Wednesday.
Bond prices moved sharply higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 9.5 basis points to 4.365 percent.
With the steep drop on the day, the ten-year yield tumbled to its lowest closing level in almost a month.
Treasuries benefitted from their appeal as a safe haven following the release of some weaker than expected U.S. economic data.
Payroll processor ADP released a report showing much weaker than expected private sector job growth in the month of May.
ADP said private sector employment rose by 37,000 jobs in May after climbing by a downwardly revised 60,000 jobs in April.
Economists had expected private sector employment to jump by 115,000 jobs compared to the addition of 62,000 jobs originally reported for the previous month.
In a post on Truth Social immediately after the report was released, President Donald Trump once again urged Federal Reserve Chair Jerome Powell to lower interest rates.
'ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE,' Trump said. 'He is unbelievable!!!'
A separate report released by the Institute for Supply Management showed service sector activity in the U.S. unexpectedly saw a slight contraction in the month of May.
The ISM said its services PMI fell to 49.9 in May from 51.6 in April, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.
With the unexpected decrease, the services PMI dropped to its lowest level since hitting 49.2 in June 2024, which marked the last time the index was in contraction territory.
Reports on weekly jobless claims and the U.S. trade deficit may attract attention on Thursday, although trading activity may be somewhat subdued ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday.
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