Yields reached their lowest levels in a week but stalled as the day’s economic data were mixed overall. — Bloomberg
NEW YORK: Treasuries rose on Wednesday amid fresh signs of weakness in US employment that kept alive bets for at least two Federal Reserve interest-rate cuts this year.
Yields reached their lowest levels in a week but stalled as the day’s economic data were mixed overall.
Short-maturity yields ended the session little changed, while long maturities sustained their declines with support from falling oil prices.
The rally gathered pace during US morning after the December increase in a gauge of private-sector payrolls fell short of the median economist estimate in a Bloomberg survey. ADP Research data released Wednesday showed an increase of 41,000, versus a median estimate of 50,000.
Another employment indicator, JOLTS job openings for November, was also weaker than anticipated.
However, the ISM gauge of service-sector activity in December released concurrently rose unexpectedly, and a related services employment gauge showed expansion for the first time since May. — Bloomberg
