U.S. government debt prices fell on Wednesday morning, signaling a tentative rebound from Tuesday’s flock to safe haven assets on weak manufacturing data.
At around 4:20 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at 1.6525%. The yield on the 30-year Treasury bond followed suit, climbing to 2.1161%.
The Institute for Supply Management (ISM) revealed Tuesday that its U.S. manufacturing index fell to 47.8 in September, the lowest gauge on activity in over a decade, as the U.S.-China trade war continued to take its toll on production.
August saw a reading of 49.1, the first contraction since August 2016, with 50 and above representing an expansion in activity.
Investors are also monitoring the ongoing impeachment inquiry into President Donald Trump. The leaders of three House of Representatives committees on Tuesday accused Secretary of State Mike Pompeo of intimidating witnesses, adding that doing so “will constitute evidence of obstruction.”
Markets remain susceptible to sounds out of Washington and Beijing on trade, with U.S. and Chinese trade officials due to resume talks this month in a bid to reach a consensus.
On the data front, investors are awaiting the ADP employment change report, due for publication at 8:15 a.m. ET.
There are no U.S. Treasury auctions scheduled for Wednesday.
– CNBC’s Tom Franck contributed to this report.