U.S. Treasury yields fell on Wednesday as investors juggled growth fears following the release of disappointing employment data for July.
The yield on the benchmark 10-year Treasury note dipped 3 basis points to 1.14% at around 8:20 a.m. ET. The yield on the 30-year Treasury bond fell 2 basis points to 1.82%. Yields move inversely to prices and one basis point equals 0.01%.
Private company job creation fell in July as fears mounted over the spreading coronavirus delta variant, payroll processing firm ADP reported Wednesday.
Employers added 330,000 positions for the month, a sharp deceleration from the downwardly revised 680,000 in June and well below the 653,000 Dow Jones estimate. June’s final total fell from the initial estimate of 692,000. July’s job growth was also the smallest gain since February.
This comes ahead of weekly jobless claims data due out on Thursday and the highly anticipated July nonfarm payroll report, set to be released on Friday.
Investors will be watching this week’s employment data closely, given that the Federal Reserve is using the recovery in the jobs market as a key indicator to gauge when it should start discussing tightening its ultra-easy monetary policy.
Federal Reserve Vice Chair Richard Clarida is due to make a speech on the outlook for U.S. monetary policy at the Peterson Institute for International Economics at 10 a.m. ET.
An auction is due to be held on Wednesday for $30 billion of 119-day bills.
