Treasury yields fall as US and China push for trade spat resolution

U.S. government debt yields fell on Wednesday as traders monitored U.S.-China trade developments.

The yield on the benchmark 10-year Treasury note fell to around 2.706 percent, while the yield on the 30-year Treasury bond slipped to 3.076 percent. Bond yields move inversely to prices.

Market players are focused on U.S.-China trade developments with mixed messages on the progress of talks between Washington and Beijing over the last few days.

President Donald Trump is focused on inking a trade deal with Beijing in the hope of lifting the stock market ahead of his re-election bid, three sources briefed on talks told CNBC on Wednesday. The sources said the president is trying to foster an equity rally as he prepares to run for a second term and has concluded that resolving the dispute may better the odds.

Sources told CNBC Monday that U.S.-China trade negotiations are in the "final stages" and that a summit in Mar-a-Lago later this month could close the deal. The New York Times also said in a report that Monday the trade deal being discussed would do little to address key structural issues.

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Meanwhile, U.S. Secretary of State Mike Pompeo said this week he thought Washington and Beijing were "on the cusp" of reaching a deal. Despite positive comments from different members of the U.S. administration, market players are yet to find out how far-reaching any deal could be.

Job creation at the company level slowed in February after a fiery start to 2019, according to a report from ADP and Moody's Analytics. The institutions reported Wednesday that private companies added 183,000 workers for the month, about in line with Dow Jones estimates of 185,000.

Though the number marked a deceleration, it came with some good news: ADP and Moody's sharply increased their count for January, raising the originally reported number of 213,000 all the way up to 300,000.

— CNBC's Kayla Tausche, Fred Imbert, and Jeff Cox contributed.