WASHINGTON (dpa-AFX) - After moving notably higher over the course of the previous session, treasuries gave back some ground during trading on Wednesday.
Bond prices regained some ground in afternoon trading after an early slump but moved back to the downside going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.6 basis points to 4.376 percent.
The early weakness among treasuries came following the release of some upbeat U.S. economic data, including a report from payroll processor ADP released showing private sector employment in the U.S. increased by more than expected in the month of July.
The report said private sector employment jumped by 104,000 jobs in July after slipping by a revised 23,000 jobs in June.
Economists had expected private sector employment to climb by 78,000 jobs compared to the dip of 33,000 jobs originally reported for the previous month.
The Commerce Department also released a report showing the U.S. economy rebounded by more than expected in the second quarter of 2025.
The report said real gross domestic product surged by 3.0 percent in the second quarter after falling by 0.5 percent in the first quarter. Economists had expected GDP to jump by 2.5 percent.
The rebound by real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending, the Commerce Department said.
Treasuries regained some ground in afternoon trading after the Federal Reserve announced its widely expected decision to leave interest rates unchanged in a divided vote.
In support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run, the Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent.
The decision to leave rates unchanged was not unanimous, however, as Fed Governors Michelle Bowman and Christopher Waller preferred to lower rates by a quarter percentage point.
Nonetheless, selling pressure re-emerged late in the session after Fed Chair Jerome Powell said the central bank has not made a decision about lowering rates in September.
'We don't do that in advance,' Powell said. 'We'll be taking that information into consideration and all the other information we get as we make our decision.'
Looking ahead, trading on Thursday may be impacted by reaction to reports on weekly jobless claims and consumer price inflation.
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