(RTTNews) - Following the notable advance seen in the previous session, treasuries gave back some ground during the trading day on Wednesday.
Bond prices climbed off their worst levels in afternoon trading but remained firmly negative. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.8 basis points to 0.543 percent.
With the increase on the day, the ten-year yield climbed off the five-month closing low set in the previous session.
The pullback by treasuries partly reflected optimism that lawmakers will eventually reach an agreement on a new coronavirus relief bill.
Democratic leaders said they continue to make progress toward an agreement after meeting with Trump administration officials on Tuesday.
"We're making progress," said Senate Minority Leader Chuck Schumer, D-N.Y. "We really went down issue by issue by issue, slogging through them,"
"They made some concessions, which we appreciated. We made some concessions, which they appreciated," he added. "We're still far away on a lot of the important issues, but we're continuing to go at it."
The comments from Schumer came after Senate Majority Leader Mitch McConnell, R-Ken., indicated he would support any agreement between Democrats and the White House.
Treasuries saw some further downside after a report from the Institute for Supply Management showed an unexpected acceleration in the pace of growth in service sector activity in the month of July.
The ISM said its non-manufacturing index inched up to 58.1 in July after spiking to 57.1 in June, with a reading above 50 indicating growth in service sector activity. Economists had expected the index to drop to 55.0.
Meanwhile, traders largely shrugged off a report from payroll processor ADP showing a substantial slowdown in private sector job growth in the month of July.
ADP said private sector employment rose by 167,000 jobs in July after soaring by an upwardly revised 4.314 million jobs in June.
Economists had expected employment to surge up by another 1.5 million jobs compared to the 2.369 million job spike originally reported for the previous month.
A report on weekly jobless claims may attract attention on Thursday, although trading activity may be somewhat subdued ahead of the Labor Department's ore closely watched monthly jobs report on Friday.
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