Treasury yields climbed on Wednesday as the latest economic data came in better than expected.
The yield on the benchmark 10-year Treasury note rose 4 basis points to 0.689% and the yield on the 30-year Treasury bond was 6 basis points higher at 1.472%. Yields move inversely to prices.
Yields gained after ADP’s monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey.
Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.
Investors watched the fiery opening debate between the two presidential candidates closely, with markets looking for signs of a clear winner emerging over the course of the election cycle in order to avoid a protracted dispute after ballots are cast on Nov. 3.
President Donald Trump and Democratic nominee Joe Biden sparred on a number of issues over a chaotic and fractious 90 minutes, including their qualifications to manage the U.S. economy, the nomination of Amy Coney Barrett to the Supreme Court and the handling of the coronavirus pandemic.
Market sentiment received a boost Tuesday night after Regeneron Pharmaceuticals announced that its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.
Meanwhile, House Speaker Nancy Pelosi said she hoped a deal could be reached with the White House on coronavirus aid spending this week, following a meeting with Treasury Secretary Steven Mnuchin. The two plan to meet again for further talks on Wednesday.
Auctions will be held Wednesday for $25 billion of 105-day Treasury bills and $30 billion of 154-day bills.
– CNBC’s Fred Imbert contributed to this report.
