U.S. Treasury yields fell sharply on Wednesday after ADP reported private sector job creation hit its weakest level in over two years.
The 10-year Treasury yield dropped more than 4 basis points to 4.414%, while the 2-year yield fell over 3 basis points to 3.926%.
Private payrolls increased by only 37,000 jobs in May, far below the expected 110,000, marking the lowest monthly total since March 2023.
This weak jobs data comes just before Friday’s official government employment report and coincides with new 50% steel tariffs taking effect and stalled U.S.-China trade negotiations.