
The yield on the 10-year Treasury slid on Wednesday after the U.S. government said it won't be stepping up its debt issuance and amid fresh signs of a solid labor market.
The benchmark yield was down more than 8 basis points to trade at 4.428%, while the 2-year Treasury yield fell more than 2 basis points to 4.191%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
In a closely watched quarterly refunding statement, the Treasury Department said it would be keeping auction sizes steady "for at least the next several quarters" while providing "incremental" increases to the size of its sales for Treasury Inflation-Protected Securities.
The department also said it will be issuing more short-term bills than usual as it uses "extraordinary measures" to keep the government operating while Congress battles over the debt limit. That announcement came despite new Treasury Secretary Scott Bessent previously criticizing his predecessor, Janet Yellen, for issuing unusually large amounts of shorter-term debt.
In economic news, ADP reported Wednesday that private payrolls expanded by 183,000 jobs in January, above the 150,000 gain that economists polled by Dow Jones had penciled in. January's reading is also just above the 176,000 jobs created in December.
Investors are now looking ahead to the January nonfarm payrolls report, which is due to be published on Friday and will provide insights into the employment picture.
Money Report
The moves also follow Federal Reserve Vice Chair Philip Jefferson revealing Tuesday that the central bank should be careful how it adjusts interest rates amid an uncertain policy environment. In broad terms, the Fed governor said he sees the economy strong, with inflation easing back on a "bumpy" road to the central bank's 2% goal and a labor market in a "solid position."
Investors are concerned that ongoing trade friction could slow economic growth and lead to higher bond prices.
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China announced on Tuesday that it will respond with a series of retaliatory measures against the U.S. and will impose additional tariffs of up to 15% on select imports. The move comes after President Donald Trump imposed on Saturday a 10% tariff on goods coming from China.