Traders work on the floor of the New York Stock Exchange during morning trading on Sept. 23, 2024.
The U.S. 10-year Treasury dipped on Wednesday after newly released data showed that the economy may be slowing.
The yield on the 10-year Treasury was last lower by 4 basis points at 4.18%. Meanwhile, the 2-year Treasury yield slipped 5 basis points to 4.124%.
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One basis point is equal to 0.01% and yields and prices move in opposite directions.
Data from the Institute for Supply Management revealed the services sector expanded for the fifth consecutive month in November. However, the reading came in at 52.1 last month, 3.9 points lower than October's 56 reading.
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An ADP report also showed that private payrolls grew less than expected in November. Companies added 146,000 on the month, below the consensus estimate of 163,000 positions that economists polled by Dow Jones had penciled in.
Investors are now looking ahead to Friday's jobs report, which is expected to be stronger than what this ADP data is implying. It's expected to show that the U.S. economy added 214,000 jobs last month according to economists polled by Dow Jones, an increase from 12,000 jobs in October. The unemployment rate is estimated to be 4.2%, up from 4.1% the prior month.
The jobs report is important because it will be the final insight into the labor market before the Fed's Dec. 17-18 meeting, where officials will decide on whether to cut or hold interest rates.
Money Report
On Wednesday afternoon, Fed Chair Jerome Powell said the economy was strong enough for the central bank to proceed cautiously on rate cuts. U.S. Treasurys showed little reaction to his comments.
"The labor market is better, and the downside risks appear to be less in the labor market. Growth is definitely stronger than we thought, and inflation is coming [out] a little higher. So the good news is that we can afford to be a little more cautious as we try to find neutral," he said in a moderated discussion in New York.
