2020.05.0619:15:00UTC+00Treasuries Show Notable Move To The Downside

Treasuries showed a notable move to the downside during trading on Wednesday, extending the pullback seen in the previous session.

Bond prices climbed off their worst levels after coming under pressure early in the session but remained firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.4 basis points to 0.711 percent.

The weakness among treasuries came as traders expressed optimism about some states reopening despite some dismal employment data.

Private sector employment nosedived in the month of April, according to a report released by payroll processor ADP.

The report said private sector employment plunged by 20.236 million jobs in April after slumping by a revised 149,000 jobs in May.

Economists had expected employment to tumble by 20.050 million jobs compared to the loss of 27,000 jobs originally reported for the previous month.

ADP noted the report utilizes data through the 12th of the month, the same as the Labor Department's monthly jobs survey, and does not reflect the full impact of COVID-19 on the overall employment situation.

"Job losses of this scale are unprecedented. The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession," said Ahu Yildirmaz, co-head of the ADP Research Institute.

Trading on Thursday may be impacted by reaction to the Labor Department's report on weekly unemployment claims.