10-year Treasury yield slides a bit after weak ADP jobs data

The 10-year U.S. Treasury note yield fell on Wednesday following a weaker-than-expected jobs reading from payrolls processing firm ADP.

The yield on the 10-year Treasury — the main benchmark for mortgages, auto loans and credit card debt — was more than 1 basis point lower at 4.609%.

The longer-dated 30-year Treasury bond yield, which is more sensitive to geopolitical risks, was down more than 2 basis points at 5.16%. The 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was up less than 1 basis point at 4.202%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

ADP reported Wednesday that nonfarm job growth slowed in July, with private companies adding 44,000 positions. That was lower than the downwardly revised 95,000 recorded in June and below the 75,000 that economists polled by Dow Jones were expecting.

This comes ahead of Friday's key nonfarm payrolls data and unemployment rate for July from the Bureau of Labor Statistics. Economists are expecting the report to show an increase of 83,000 jobs last month, with the unemployment rate remaining unchanged at 4.2%.

Investors also eyed how a potential deal to unlock the Strait of Hormuz is likely to shape the U.S. economic picture and inflation path.

Treasury Secretary Scott Bessent told CNBC Tuesday that a deal to allow commercial ships to pass through the Strait of Hormuz could be struck this week. That sent U.S. government bond yields sharply lower, with U.S. crude oil prices tumbling almost 6% during Tuesday's session.

Later, U.S. Central Command in a post on X declared the Strait of Hormuz's southern route "free and open."

Oil prices edged higher Wednesday, with West Texas Intermediate futures for September delivery trading at roughly $76 per barrel, a 0.3% rise, and Brent crude, the global benchmark, up 1% at around $80.