Bonds

10-year Treasury yield rises for a third day to above 1.6%

The benchmark 10-year rose for a third day on Wednesday as investors returned to risk assets following a steep sell-off last week sparked by fears about the fast-spreading coronavirus.

Treasurys

The yield the benchmark 10-year Treasury note, which moves inversely to price, climbed three basis points to about 1.637%, while the yield on the 30-year Treasury bond was also higher at around 2.111%.

Yields turned higher after strong jobs data boosted investor sentiment. The jobs market adding 291,000 in private payrolls for the best monthly gain since May 2015, according to a report Wednesday from ADP and Moody's Analytics. That was also well above the 150,000 estimate from economists surveyed by Dow Jones.

Investors continued to closely monitor the China virus which has caused at least 490 deaths in the country. Optimism was rising on a breakthrough in fighting the coronavirus after reports overnight said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug. CNBC has not verified the media reports.

China's National Health Commission on Wednesday confirmed 24,324 cases of the coronavirus in the country. The outbreak of the deadly pneumonia-like virus, which was thought to have originated in the Chinese city of Wuhan, has been recognized as a global health emergency by the World Health Organization.

As of Monday, the United Nations' health agency reported nearly 200 cases of the virus in at least 23 countries outside of China.

Speaking during his State of the Union address on Tuesday, U.S. President Donald Trump said the U.S. was "working closely" with the Chinese government on the outbreak.

On the data front, ADP employment figures for January will be released at 8:30 a.m. ET.

International trade data for December, a final reading of services purchasing managers' index (PMI) for January and the latest and ISM non-manufacturing will follow slightly later in the session.

Federal Reserve Board Governor Lael Brainard will comment on the world's largest economy at an event in California on Wednesday afternoon.

There are no major U.S. Treasury auctions scheduled on Wednesday.