After showing a strong upward move in recent sessions, treasuries gave back some ground during trading on Wednesday in reaction to some relatively upbeat economic data.
Bond prices moved to the downside in early trading and remained stuck in the red throughout the trading day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.7 basis points to 1.846 percent.
With the moderate upward move on the day, the ten-year yield regained some ground after ending the previous session at its lowest closing level in almost four months.
The pullback by treasuries was partly due to the release of a report from payroll processor ADP showing a continued increase in private sector employment in the month of January.
ADP said employment in the non-farm private business sector rose by 170,000 jobs in January following a revised increase of 292,000 jobs in December.
A separate report from the Institute for Supply Management showed a continued expansion in manufacturing activity in the month of January, with the index of activity in the sector reaching a seven-month high.
The ISM said its purchasing managers index rose to 54.1 in January from a revised 53.1 in December, with a reading above 50 indicating growth in the manufacturing sector.
The release of the ISM report on U.S. manufacturing also came after the release of separate reports showing expansions in manufacturing activity in both Germany and China.
Additionally, the Commerce Department released a report showing a much bigger than expected increase in U.S. construction spending in the month of December.
In other bond-related news, the Treasury Department announced the details of next week's auctions of three-year and ten-year notes and thirty-year bonds.
The Treasury said it plans to sell $32 billion worth of three-year notes next Tuesday, $24 billion worth of ten-year notes next Wednesday and $16 billion worth of thirty-year bonds next Thursday.
While U.S. reports on weekly jobless claims and labor productivity are likely to attract some attention on Thursday, trading activity may be somewhat subdued ahead of Friday's monthly jobs report.
Nonetheless, traders are likely to keep a close eye on remarks by Federal Reserve Chairman Ben Bernanke, who is due to testify before the House Budget Committee.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.