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U.S. Treasury yields didn’t show much direction on early Wednesday trade as investors shrugged off the previous day’s president debate, with many shifting their attention to economic data.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.649% was up 0.1 basis point to 0.646%. The 2-year note yield TMUBMUSD02Y, 0.125% edged 0.4 basis point down to 0.121%. The 30-year bond yield TMUBMUSD30Y, 1.427% rose 1.2 basis points to 1.418%. Bond prices move inversely to yields.
What’s driving Treasurys?
Investors looked past Tuesday night’s presidential debate, with bond yields showing little change after the proceedings. Though, stock futures were drifting lower, the pessimism around risk assets didn’t buoy values for government bonds.
If anything, traders said the lack of volatility after the fractious debate may reflect how Treasurys have been unable to move due to the Federal Reserve’s clear communication that interest rates will not budge from near-zero for a long time.
See: Presidential debate antics leave many viewers disgusted
Instead, many turned their attention to the economic data to get a better picture of the labor market’s health.
U.S. private-sector employment rose by 749,000 jobs, its highest in three months, Automatic Data Processing Inc. reported Wednesday. This comes ahead of the more important official employment report for September on Friday.
The decline in the U.S. second quarter gross domestic product was revised up to -31.4% from -31.7%. Meanwhile, the Chicago purchasing manager index surges to 62.4 in September from 51.2. Later, the pending home sales index for August is due at 10 a.m. ET.
What did market participants’ say?
“There appears to be very little on the horizon capable of breaking the range in U.S. rates; save, perhaps, Friday’s NFP print,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, referring to the September jobs report.
