Treasuries saw some volatility during morning trading but recovered to finish Wednesday's session in positive territory. Some of the instability came as better than expected data from the housing and manufacturing sectors reignited risk appetite for some investors, prompting some movement out of bonds and into the stock market.
Treasuries moved off of their lows in the late morning and showed modest strength heading into the close. Subsequently, the yield on the ten-year benchmark note closed at 2.658 percent, down 2.7 basis points on the session.
Earlier in the day, the New York Federal Reserve bought back approximately $6 billion in treasuries as part of the government's quantitative easing plans. The Fed bought treasuries with maturity dates ranging between May of 2012 and May of 2013 with a total of $16.95 billion offered for purchase.
The next round of security purchases is scheduled for Thursday, when the Fed will buy treasuries set to mature between the years 2013 and 2016.
Wednesday's purchase is part of the Fed's plan to buy up a total of $300 billion in longer-term securities, set in motion last week. In addition, the plan also indicates that the government will buy $750 billion in mortgage-backed securities along with $100 billion in agency debt, bringing the overall figure to an unprecedented $1.15 trillion.
Investors considered the day's data from the labor sector showing private employment falling by much more than expected in the month of March.
According to a report released by Automatic Data Processing, Inc. (ADP), non-farm private employment fell by 742,000 jobs in March following a revised decrease of 706,000 jobs in February. Economists had expected a decrease of 663,000 jobs compared to the decrease of 697,000 jobs originally reported for the previous month.
The report is closely watched as it serves as a precursor for the government jobs figures due to be released on Friday.
The Labor Department's report on jobless claims for the week ending March 28th is set for release Thursday morning at 8:30 AM ET. Analysts expected first time claims to be at 650,000 compared to previous week's numbers, which came in at 652,000.
Friday morning, the government is set to report the most significant piece of employment data for the month. Economists expect a decline of 650,000 jobs after last month's figures showed a decrease of 658,000 jobs.
Meanwhile, the unemployment rate is expected to edge up to 8.5 percent after last month's number of 8.1 percent was the highest in 26 years.
For comments and feedback: contact email@example.com