Treasuries are showing strength in early trading Wednesday as investors move into the safety of government backed bonds amid uncertainty ahead of key economic data due to be released throughout the day.

The flight to safety comes as investors digest weak employment data reported earlier this morning, as the numbers are considered an indicator of the closely watched government labor figures due out later this week. In addition, traders will be looking for direction in data from the housing, manufacturing and automotive sectors due out later today.

Treasuries have continued their move to the upside from late in the previous session. Subsequently, the yield on the ten-year benchmark note is down to 2.647 percent, down 3.8 basis points on the day. Today, the Fed is scheduled to buy back some of the treasuries as per its trillion dollar program announced last week.

Meanwhile, investors have begun to digest the day's influx of economic data, which began with the ADP Employment report for March. The figures showed that the private sector shed 742,000 jobs during the month, substantially worse than the 706,000 jobs lost in the previous month. Economists had been looking for a decline of 663,000 jobs for March.

Traders will also consider figures from the housing sector on pending home sales scheduled for release at 10 AM ET. Last month, the figure dipped 7.7 percent, another indication that the housing market has not yet found a bottom. Traders have marked the sector as one to watch as an indicator of any economic recovery.

The Institute of Supply Management's Manufacturing Index for March is due to be released at the same time, with the index of activity in the manufacturing sector expected to edge up to 36.0 from the previous reading of 35.8

Also at 10 AM ET, the Commerce Department is scheduled to release its monthly report on construction spending for February. Analysts expect spending to fall 1.9 percent following a 3.3 percent decline in the previous month.

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