Treasuries rose, with 10-year yields approaching the lowest level in a week, as a decline in stocks around the world increased demand for the relative safety of U.S. government securities.
Bonds briefly extended gains after ADP Research Institute said U.S. companies added fewer workers in May than forecast. The Labor Department will report June 7 that U.S. nonfarm payrolls swelled by 167,000 jobs last month, a Bloomberg survey estimated.
Investors are weighing whether the Federal Reserve will curb its bond purchases, known as quantitative easing, this year as the economy expands.
“The market is holding its breath waiting for payrolls,” said Ira Jersey, an interest-rate strategist in New York at Credit Suisse Group AG, one of 21 primary dealers that trade with the Fed. “Anything that advises what payrolls are going to be on Friday, given that it’s going to determine the Fed’s next move, is important.”
The U.S. 10-year note yield fell three basis points, or 0.03 percentage point, to 2.11 percent at 9:46 a.m. New York time, according to Bloomberg Bond Trader prices. It slid as much as six basis points. The 1.75 percent note due in May 2023 rose 9/32, or $2.81 per $1,000 face amount, to 96 3/4. The yield dropped to 2.06 percent on May 31, the lowest since May 28.
The MSCI Asia Pacific Index of shares slid 1.7 percent and the Stoxx Europe 600 Index fell 0.8 percent. The Standard & Poor’s 500 Index declined 0.3 percent.