Extending the downward move seen over the two previous sessions, treasuries moved notably lower during the trading day on Wednesday.
Bond prices came under pressure early in the day and remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 4.9 basis points to 3.159 percent.
The continued weakness among treasuries came after a report from payroll processor ADP showed another significant increase in employment in the U.S. private sector in the month of October.
ADP said private employment jumped by 227,000 jobs in October after surging up by a downwardly revised 218,000 jobs in September.
Economists had expected an increase of about 189,000 jobs compared to the addition of 230,000 jobs originally reported for the previous month.
The stronger than expected job growth in October reflected the biggest increase in private sector employment since a jump of 241,000 jobs in February.
“Despite a significant shortage in skilled talent, the labor market continues to grow,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “We saw significant gains across all industries with trade and leisure and hospitality leading the way.”
She added, “We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire.”
On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.
Employment is expected to climb by 190,000 jobs in October after rising by 134,000 jobs in September, while the unemployment rate is expected to hold at 3.7 percent.
Continued strength on Wall Street also weighed on treasuries, with stocks extending the strong upward move seen late in the previous session.
The extended rally by stocks comes on the final day of what remains on pace to be one of the worst months in years.
A slew of economic data is scheduled to be released on Thursday, including reports on weekly jobless claims, labor productivity and costs, manufacturing activity and construction spending.
Trading activity may be somewhat subdued, however, as traders look ahead to the release of the Labor Department’s monthly jobs report on Friday.