this 10-Year Treasury Bond Yield The index was near flat after briefly hitting a new high for the year on Wednesday.
The benchmark interest rate fell less than 1 basis point to 4.363%. Yields once hit their highest level since late November.
this 2-Year Treasury Bond Yield It fell more than 1 basis point and was last at 4.687%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
ADP private employment data released on Wednesday morning showed growth that exceeded expectations. Businesses added 184,000 employees in March, above the 155,000 forecast by economists polled by Dow Jones. This also marks the fastest growth since July 2023.
The market moves come as investors track economic data and closely watch for clues from Federal Reserve policymakers on the number of rate cuts expected in 2024. According to data from the Federal Reserve, traders believe that the probability of keeping interest rates unchanged at the Federal Reserve’s May policy meeting is close to 99%. CME Group Fed Watch Tool as of Wednesday afternoon. They put the probability of a rate cut at the June meeting at 62.5%, down sharply from 70.1% a week ago.
Atlanta Fed President Raphael Bostic said he expects to cut interest rates only once this year, in the fourth quarter. Federal Reserve Chairman Jerome Powell said in the afternoon that the central bank needs more evidence that inflation has eased before it can reduce borrowing costs.
Cleveland Fed President Loretta Mester said on Tuesday she still expects an interest rate cut this year but ruled out one at the next policy meeting in May.
Separately, San Francisco Fed President Mary Daly said she expects to cut interest rates this year, but not until there is more convincing evidence that inflation has been contained.
Last month, the Federal Reserve met expectations and kept monetary policy unchanged for the fifth consecutive time, keeping its benchmark overnight borrowing rate in a range of 5.25%-5.5%.
The Federal Reserve also said at the time that it still expected to cut interest rates by three percentage points before the end of the year.
—CNBC’s Jeff Cox contributed to this report.
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