NEW YORK: US Treasuries prices fell on Wednesday, surrendering gains from Tuesday's flight-to-safety rally as Wall Street rallied.
Activity was limited as traders refrained from making major bets ahead of Friday's US non-farm payrolls report for September, which may influence the Federal Reserve's timeline for hiking interest rates.
Treasuries prices held steady at lower levels after data showed US private employers added 200,000 jobs in September, according to the ADP Research Institute, a payroll processor.
The figure beat economists' expectations, suggesting there might be enough jobs growth for the Federal Reserve to raise interest rates later this year.
Despite slight drops in Japanese industrial production, European CPI, German retail sales and continued slumps in commodities, equities rallied.
"Weaker global data should have supported buying Treasuries, but we see market participants squaring away ahead of Friday's nonfarm payrolls data," said John Canavan, market strategist at Stone & McCarthy Research Associates in New Jersey.
Economists expect US employers added 203,000 thousand jobs last month, according to a Reuters poll.
Traders and analysts are listening closely to speeches from Federal Reserve Bank of New York President William Dudley and Federal Reserve Bank of St. Louis President James Bullard, today, for clues as to whether the central bank will increase rates in October or December.
In early US trading, 10-year Treasuries were down 7/32 in price to yield 2.079 percent, up from 2.057 percent late Tuesday.
The 30-year bond was down 23/32 in price to yield 2.88, versus 2.859 percent late Tuesday.
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