Bonds Pare Losses But Remain Lower

U.S. Treasuries saw some late bargain hunting after being slammed lower early Wednesday with the five-year hit hardest, running to the highest yield/lowest price levels since Friday, following a run of overall positive data ahead of the Federal Open Market Committee’s 2 p.m. ET policy statement. The upside surprises on the ADP private payrolls and Institute for Supply Management manufacturing reports saw spikes in volumes accompanying the sell-offs. Analysts are reassessing previous estimates for Friday’s non-farm payrolls print, with consensus of 175,000 expected to edge higher.

The 30-year recently traded near 3.09% from a 3.109% low and 3.051% close Tuesday. The 10-year continues its two-month churn around the key 2.50% area, recently trading at 2.495% from a low near 2.5147%, levels last seen Friday, and a 2.453% close. The five-year has underperformed with heightened sensitivity to any Fed moves, trading near 1.96% from a 1.987% low and 1.905% Tuesday. The two-year has slumped to the lowest in a week near 1.256% from a 1.2682% low and 1.205% close.

By Sonia Taylor