U.S. Government Bonds Flat; Shorter-Dated Notes Fall; Faster Pace of Expansion in Service Sector Offset by Disappointing Jobs Growth in Private Sector
Benchmark Treasury bonds were flat on Wednesday as the faster pace of expansion in the U.S. service sector was offset by disappointing jobs growth in the private sector.</br></br>In late afternoon trading, the benchmark 10-year note was flat, yielding 2.285%.</br></br>The yield was 3% at the start of January. Yields fall as prices rise.</br></br>The monthly gauge of the service sector from the Institute for Supply Management rose to 59.3 last month, the latest signal the U.S. economy has gained traction.</br></br>The upbeat report sent prices of shorter-dated notes lower as it bolstered expectations the Federal Reserve will start raising interest rates sometime next year.