NEW YORK: Yields on US Treasuries rose on Wednesday after data showed that U.S. employers boosted private-sector hiring in November, supporting the view that the economy is strong enough for the Fed to raise interest rates this month, and ahead of a speech by Federal Reserve Chair Janet Yellen.
The Fed chair will speak before the Economic Club of Washington at 12:25 EST (1725 GMT). Traders are listening closely to the speech for language possibly solidifying the likelihood of a December rate hike.
"Right now we are in the pre-Yellen wait, with everyone waiting and watching. We hope a combination of Yellen's comments and this week's data will cement December expectations of a rate hike," said Michael Cloherty, head of U.S. rates strategy at RBC Capital Markets.
The ADP employment report showed private payrolls increased 217,000 in November, signaling job growth is likely strong enough to support the first Federal Reserve interest rate hike in nearly a decade when policymakers meet on December 15-16.
The data is an indication that the Labor Department's employment report on Friday will come in within expectations, keeping the U.S. central bank on track to raise rates this month.
"People have been saying 'there's more data, there's more data' but after this week's jobs report, there really isn't and that's setting in," said David Ader, head of government bond strategy at CRT Capital Group in Stamford, Connecticut.
The better-than-expected data briefly pushed yields on U.S. Treasuries to session highs, with yields on benchmark 10-year notes nearly hitting 2.20 percent.
U.S. benchmark 10-year Treasury notes were last down 8/32 in price to yield 2.183 percent, up from a yield of 2.150 percent on late Tuesday.
The U.S. 30-year bond fell 4/32 in price to yield 2.924 percent, up from a yield of 2.912 percent late Tuesday.
The Fed will release its Beige Book report of anecdotal information on business activity and Federal Reserve Bank of San Francisco President John Williams is scheduled speak during the day.
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