Treasuries Move Back To The Downside Following Upbeat Jobs Data

(RTTNews) - Following the notable advance seen in the previous session, treasuries moved back to the downside during trading on Wednesday.

Bond prices regained some ground after coming under pressure in early trading but remained firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.2 basis points to 3.785 percent.

The pullback by treasuries came following the release of a report from payroll processor ADP showing stronger than expected private sector job growth in the month of September.

ADP said private sector employment climbed by 143,000 jobs in September after rising by an upwardly revised 103,000 jobs in August.

Economists had expected private sector employment to advance by 120,000 jobs compared to the addition of 99,000 jobs originally reported for the previous month.

The upbeat jobs data further offset the Federal Reserve will continue to aggressively lower interest rates in the coming months.

On Friday, the Labor Department is due to release its more closely watched report on employment in the month of September.

Economists currently expect the report to show employment rose by 140,000 jobs in September after climbing by 142,000 jobs in August, while the unemployment rate is expected to hold at 4.2 percent.

Trading on Thursday may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims, service sector activity and factory orders.