Treasury prices slip after reports on jobs, service sector show economy is still growing

Treasury prices slip on jobs, service sector data

NEW YORK — Treasury prices slipped Wednesday after government reports provided some reassurance that the economy is still growing.

The price of the 10-year note fell 37.5 cents to $104.563, while its yield rose to 2.96 percent from 2.92 percent late Tuesday.

Payroll company ADP said private employers modestly increased hiring last month, while the Institute for Supply Management’s service sector index rose unexpectedly in July.

The latest batch of earnings were also largely better than expected.

Earnings and economic reports in recent weeks have painted a mixed picture about the pace of recovery. The key reports Wednesday show that while growth might be sluggish, there are no indications the economy is headed back into recession.

Markets are now awaiting the Labor Department’s monthly jobs report due out Friday. That data is expected to show private employers added 90,000 jobs last month and the unemployment rate rose to 9.6 percent from 9.5 percent in June.

In other trading, the yield on the two-year note climbed to 0.57 percent from 0.54 percent. Its price fell 50 cents to $100.094.

The yield on the 30-year bond rose to 4.08 percent from 4.05 percent, while its price lost 46.88 cents to $104.969.

The yield on the three-month Treasury bill rose to 0.14 percent from 0.13 percent. Its discount rate was 0.15 percent.