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US Treasury yields hold higher after Yellen, notes sale

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Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. sovereign bonds prices edged lower Wednesday as markets digested dovish signals by U.S. Federal Reserve Chair Janet Yellen and digested ADP private payrolls data.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, moved higher to 1.8255 percent, while the yield on the 30-year Treasury bond was also higher at 2.6514percent.

Yellen managed to curb expectations of an imminent interest rate hike by the central bank during her speech at the Economic Club of New York Tuesday, saying it would be wise for the Federal Open Market Committee "to proceed cautiously in adjusting policy."

Market watchers also kept an eye on Chicago Fed President Charles Evans, who spoke with CNBC's "Squawk Box" on Wednesday, saying he would be surprised if the conditions for an April rate hike were met.

On the data front. ADP private payrolls rose 200,000 in March,in line with expectations. On Friday, investors will turn their eyes to the key March jobs report.

"The March job gain is right in line with the new 3 month average and around in line with the 6 month average of 209,000 and the 12-month average of 206,000. Thus, the news reflects a steady state in terms of job creation in an aging economic recovery," said Peter Boockvar, chief market analyst at The Lindsey Group.

Investors also digested a seven-year notes sale Wednesday, the last of three offerings this week. The Treasury Department auctioned $28 billion in seven-year notes at a high yield of 1.606 percent.

The bid-to-cover ratio, an indicator of demand, was 2.51.

Indirect bidders, which include major central banks, were awarded 57.8 percent. Direct bidders, which includes domestic money managers, bought 15.5 percent.

Seven-year note yields edged lower, to 1.5837 percent, following the sale.