U.S. government debt yields slipped on Wednesday after private payrolls numbers and productivity data hinted at a growing economy and a tight labor market.
Companies in the United States added 190,000 in November, suggesting that labor market may be normalizing after months of hurricane-skewed data, according to the monthly report from ADP and Moody's Analytics.
While 190,000 is a slightly cooler result than in prior months, economists are beginning to worry that the economy — or at least the labor market — may be extended beyond a natural rate productivity.
"The job market is red hot, with broad-based job gains across industries and company sizes," Mark Zandi, chief economist at Moody's, said in a statement Wednesday. "There is a mounting threat that the job market will overheat next year."
Meanwhile, interest rates on home loans are now significantly lower than a year ago, which may spur a new round of refinancing.
Total mortgage applications rose 4.7 percent last week from the previous week.
Aside from tax reform and ongoing rumblings surrounding the current U.S. administration's relationship with Russia, other news set to shake up sentiment Wednesday concerns Jerusalem.
President Donald Trump is set to announce that the U.S. will recognize Jerusalem as Israel's capital, with senior administration officials saying the U.S. embassy will be moved there, yet noting that this could take "years". The move is controversial in the Middle East and has been criticized by Turkey, among others.
—CNBC's Jeff Cox contributed to this report.