Treasury prices rose, pulling yields lower, on Wednesday ahead of productivity and labor costs data.
What are Treasurys doing?
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The 10-year benchmark Treasury yield fell to 2.332%, from 2.356% on late Tuesday, while the 30-year bond yield ticked town to 2.714%, from 2.732%. The 2-year note yield dipped to 1.790%, versus 1.826%.
Bond prices move in the opposite direction of yields.
What's driving markets?
Bond investors are awaiting key economic data that could help give an early read of the U.S. growth track.
Economists say that productivity is arguably the key long-term driver of a country's growth prospects and needed to unlock the further wage gains that could give the Federal Reserve the encouragement to raise rates several times in 2018. The central bank has insisted tight labor markets would stoke inflationary pressures and the recent weakness in consumer prices would prove fleeting.
The ADP report on private-sector employment Wednesday showed private employers added 190,000 jobs in November, down from 234,920 in October.
Economists polled by MarketWatch forecast third-quarter productivity to hit 3.3%, from 3.0% in April to June. Third-quarter unit labor costs, a gauge of wages relative to output, are forecast to come in at 0.2% by economists polled by MarketWatch.
What did market participants say?
"Wednesday's report on productivity and costs will almost certainly include a downward revision to unit labor costs in both Q2 and Q3," said Jim O'Sullivan, chief U.S. economist for High Frequency Economics. "The weakness in unit labor costs will undoubtedly be cited by many as evidence that worries about overheating due to a tight and tightening labor market are misplaced."
(END) Dow Jones Newswires
December 06, 2017 08:24 ET (13:24 GMT)