The yield on the benchmark 10-year Treasury note, which moves inversely to price, rose more than 6 basis points to around 1.774%, while the yield on the 30-year Treasury bond was also higher at 2.222%
The Bloomberg report, which cited people familiar with the talks, said the two countries were edging closer to agreeing on the amount of tariffs that would be rolled back in a so-called phase-one trade deal.
The news came after Trump told reporters in London on Tuesday that it might be better to wait until after the 2020 presidential election to conclude a trade deal with China.
Private payrolls increased by just 67,000 last month, according to an estimate Wednesday from ADP and Moody's Analytics. The count was well below the 150,000 consensus from economists surveyed by Dow Jones and the lowest month since May.
Meanwhile, the U.S. Trade Representative announced Monday a list of French goods that could see tariffs of up to 100%. The decision came after France introduced a digital services tax, which the U.S. argues treats U.S. tech companies unfairly. France and the wider European Union have promised to retaliate against potential U.S. tariffs on French goods.
At the same time, the U.S. Commerce Secretary Wilbur Ross said the Trump administration has not ruled out imposing tariffs on imported European autos, despite not announcing a decision in November on whether to put additional levies on cars in the region.