U.S. bonds prices were slightly higher on Wednesday, holding firm after a heavy sell-off on Tuesday with stronger-than-expected U.S. service sector data suggesting the world’s biggest economy may have weathered last month’s partial government shutdown better than feared.
Yields on benchmark 10-year Treasury notes ticked slightly to 2.6457 percent.
(Read More: Service sector expands more than expected in October: ISM)
Investors continue to try to guess when the U.S. Federal Reserve may look to moderate its bond-buying program, which has so far suppressed yields. With Tuesday’s data coming in above forecasts, interest rates pushed higher with the expectation that “tapering” could now come sooner than expected.
The Institute of Supply Management non-manufacturing survey index rose to 55.4 in October from 54.4 in September. A reading above 50 in the index indicates an expansion in the U.S. service sector. Economists polled by Reuters expected a reading of 54.0
More data is due this week which could add to a growing picture of how the U.S. economy after the partial government shutdown. Third-quarter gross domestic product is due Thursday and non-farm payrolls data is due Friday.
U.S. bonds prices were slightly higher on Wednesday, holding firm after a heavy sell-off on Tuesday.