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Treasury Yields Turn Flat After Disappointing Jobs Data

NYSE

Treasury yields erased earlier gains and turned flat on Wednesday following a disappointing U.S. employment report.

The yield on the benchmark 10-year Treasury note was little changed at 1.304%. The yield on the 30-year Treasury bond was also flat at 1.924%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

U.S. companies created much fewer jobs than expected in August as the Covid resurgence coincided with cutbacks in hiring, according to a report Wednesday from payroll services firm ADP.

Private payrolls rose just 374,000 for the month, well below the Dow Jones estimate of 600,000 though above July's 326,000, which was revised downward slightly from initial 330,000 reading.

This comes ahead of the release of the highly anticipated August nonfarm payroll report on Friday. Dow Jones economists expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%.

Investors will be looking at both reports closely, along with weekly jobless claims data, due to the fact that the Federal Reserve is monitoring the labor market recovery to gauge when it should tighten monetary policy.

An auction is scheduled to be held for $30 billion of 119-day bills.

CNBC's Tanaya Macheel contributed to this market report.

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