(Bloomberg) -- Treasuries slipped as signs of resilience in the US jobs market combined with lingering concerns over future supply.
The yield on 10-year notes rose three basis points on Wednesday to 4.11%, on course for the highest close in almost a month. Longer-dated notes led the decline, which was initially triggered by ADP Research data showing employment at US companies increased by more than forecast in October.
"This employment report should serve to alleviate the Federal Reserve's apprehensions regarding labor market deterioration," said Florian Ielpo, head of macro, multi asset team at Lombard Odier Asset Management. He sees a trading range between 4.00% and 4.25% "for an extended period."
The selling extended on the Treasury's refunding announcement. While officials indicated the US is not looking to boost sales of notes and bonds until well into next year, the unchanged language was widely expected and may have disappointed those betting on a more aggressive shortening of the borrowing program.
The ADP data has taken on greater importance due to the US government shutdown. It's one of the few monthly snapshots of the labor market, making it a key input into investors' outlook for the US economy as well as Federal Reserve decision-making on interest-rate policy.
--With assistance from Alice Gledhill.
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