World News

Authorities bond yields rise forward of the ADP job report


The US 10-year Treasury yield surged back above 1.56% early Wednesday, before ADP’s September employment change report was released later that morning.

The benchmark 10-year bond yield rose 3 basis points to 1.564% at 3:20 a.m. ET. The yield on the 30-year government bond rose almost 4 basis points to 2.137%. The returns move inversely to the prices and 1 basis point equals 0.01%.

The 10-year rate topped 1.56% last week, its highest level since June, amid inflation and tighter monetary policy.

Payroll company ADP will be posting its monthly job report at 8:15 a.m. ET.

The closely watched report on off-farm payrolls for September is then due Friday at 8:30 p.m. ET.

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A rebound in the labor market is an indicator used by the Federal Reserve to help decide when to tighten monetary policy. The central bank announced at its September meeting that it would try to withdraw its bond purchases soon.

Better-than-expected output on Tuesday supported optimism about the economic recovery. The index report of the purchasing managers’ index for services of the Institute for Procurement Management for September rose to 61.9 from 61.7 in August, 0.2 points better than expected.

Auctions for $ 30 billion in 119-day bills and over $ 40 billion in 64-day bills are expected to take place on Wednesday.

– CNBC’s Hannah Miao contributed to this market report.