US yield curve steepens as data shows big jump in jobs



U.S. Treasury bonds declined and the yield curve steepened on Wednesday after the ADP jobs report, which is viewed as an indicator of the all-important non-farm payrolls, showed a large gain in private payrolls last month.

, 10-year and 30-year yields rose in the wake of the report, steepening the yield curve, after the data showed a net gain of 281,000 jobs in June, well above analyst estimates. The 10-year yield held near 2.63 percent, while the 30-year yield edged up to 3.46 percent.

Bonds held their losses as Federal Reserve chair Janet Yellen said in a speech that she saw no need "for monetary policy to deviate from a primary focus on attaining price stability and maximum employment, in order to address financial stability concerns."

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The monthly non-farm payrolls report is due out on Thursday, having been brought forward because of the July 4 holiday. Economists polled by Dow Jones forecast that employers created 215,000 positions in June.

Developments in Iraq remain on the radar. The country's new parliament failed to elect a speaker on Tuesday, despite Washington urging the quick formation of a new government. The speaker is one of the three leadership positions, along with the president and prime minister.