European debt yields for risky nations including Portugal fell on Wednesday and US stock futures pointed to a higher open as risk sentiment seemed to improve. US bonds also slightly pared price losses after data showed that the pace of job gains among private employers slowed in January following a sharp gain the month before. "ADP was slightly weaker than expected so we're seeing a little bit of positive price action," said Dan Mulholland, Treasuries trader at RBC Capital Markets in New York. Demand for Treasuries also ebbed slightly following large buying on Tuesday. "Month-end took the market up yesterday," Mulholland said. "There have been fits and starts of concentrated buying in the Treasury market." The next major data release will be the January ISM Manufacturing Index later this morning, which is expected to show ongoing but moderate expansion. Benchmark 10-year notes were last down 6/32 in price to yield 1.82 percent, up from 1.79 percent late on Tuesday. Two-year interest rate swap spreads, which are seen as a proxy for credit counterparty risk, tightened 2.50 basis points to 27.25 basis points. They have tightened from over 50 basis points in December.