MW: BOND REPORT: Treasurys fall as equities gained ground
NEW YORK (MarketWatch) -- Treasurys declined Wednesday, with yields higher, as overseas equities gained and U.S. futures pointed higher amid hopes that stimulus measures in China could lead a global economic rebound.
Ten-year note yields jumped 13 basis points, or 0.13%, to 3.01%, a level it has only closed above once in almost a month.
Yields on 2-year notes rose 6 basis points to 0.95%. Bond yields move in the opposite direction of prices.
Some analysts also noted the trepidation surrounding how much debt the Treasury Department will sell next week. It announces the amounts on Thursday.
"Treasury yields are higher on overnight stock gains and speculation that the U.S. will sell over $60 billion in debt next week," said Tom di Galoma, head of U.S. government bond trading at Jefferies & Co.
Bonds stayed down even after ADP Employment Services said that companies slashed 697,000 jobs in February. Read more on ADP.
The report comes two days before the government's closely-watched monthly payrolls report. Economists surveyed by MarketWatch expect the Labor Department to say on Friday that the economy lost 640,000 jobs last month.
Still to come at 10 a.m. Eastern time is a report showing the service sector of the economy contracted further last month. The Institute for Supply Management's index on the non-manufacturing sector is expected to decline to 41 for February from 42.9 in the previous month.
Also, the Federal Reserve's Beige Book, a compilation of anecdotes about the state of the economy, is due for release at 2 p.m.
