WASHINGTON (dpa-AFX) - Treasuries showed a notable move to the downside during trading on Wednesday, adding to the modest weakness seen in the previous session.
Bond prices came under pressure 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, climbed 4.2 basis points to 4.293 percent.
The continued weakness among treasuries came after President Donald Trump announced that he has reached a trade deal with Vietnam.
In a post on Truth Social, Trump said the terms of the deal call for Vietnam to pay a 20 percent tariff on goods sent to the U.S. and a 40 percent tariff on any transshipping.
'In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,' Trump said.
He continued, 'In other words, they will 'OPEN THEIR MARKET TO THE UNITED STATES,' meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.'
The news of the trade deal helped overshadow a report from payroll processor ADP showing private sector employment in the U.S. unexpectedly decreased in the month of June.
ADP said private sector employment fell by 33,000 jobs in June after rising by a downwardly revised 29,000 jobs in May.
Economists had expected private sector employment to increase by 95,000 jobs compared to the addition of 37,000 jobs originally reported for the previous month.
On Thursday, the Labor Department is scheduled to release its more closely watched report on employment, which includes both public and private sector jobs.
Economists currently expect employment to increase by 110,000 jobs in June after climbing by 139,000 jobs in May, while the unemployment rate is expected to tick up to 4.3 percent from 4.2 percent.
Trading on Thursday is likely to be driven by reaction to the monthly jobs report, although reports on weekly jobless claims, service sector activity and the U.S. trade deficit may also attract attention.
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