After an early move to the downside, treasuries regained ground over the course of the trading session on Wednesday. <\/p>\n
Bond prices climbed well off their worst levels of the day, closing slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by nearly a basis point to 1.434 percent after reaching a high of 1.497 percent.<\/p>\n
The initial pullback by treasuries came as traders cashed in on the advance seen in yesterday’s session, which saw the ten-year yield hit its lowest intraday level in over two months.<\/p>\n
Treasuries rebounded as the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.<\/p>\n
The CDC said the first confirmed omicron case was detected in an individual in California, who returned from South Africa on November 22, 2021.<\/p>\n
“The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive,” the CDC said. “All close contacts have been contacted and have tested negative.”<\/p>\n
Meanwhile, traders largely shrugged off the latest U.S. economic news, including a report released by payroll processor ADP showed private sector employment increased by slightly more than expected in the month of November.<\/p>\n
ADP said private sector employment shot up by 534,000 jobs in November after surging by a revised 570,000 jobs in October.<\/p>\n
Economists had expected private sector employment to jump by about 525,000 jobs compared to the addition of 571,000 jobs originally reported for the previous month.<\/p>\n
ADP chief economist Nela Richardson noted, “It’s too early to tell if the Omicron variant could potentially slow the jobs recovery in coming months.”<\/p>\n
The Institute for Supply Management released a separate report showing manufacturing activity grew at a slightly faster rate in the month of November.<\/p>\n
The ISM said its manufacturing PMI crept up to 61.1 in November from 60.8 in October, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 61.0.<\/p>\n
Further news on the Omicron front may attract attention on Thursday along with the Labor Department’s report on weekly jobless claims.<\/p>\n
Trading activity may be somewhat subdued, however, as traders look ahead to the more closely watched monthly jobs report on Friday. <\/p>\n