Treasury yields popped on Wednesday as optimism over the reopening of economies following coronavirus-induced shutdowns boosted risk appetite for investors.
Wall Street rallied on Tuesday and the momentum looks set to continue, as the prospect of businesses reopening outweighs concerns about the spread of the Covid-19 pandemic, rising U.S.-China tensions and nationwide civil unrest following the death in police custody of George Floyd, an unarmed black man.
Protests continued in major cities across the U.S. on Tuesday for the eighth consecutive night as tens of thousands defied curfews, while the Pentagon moved troops to Washington, D.C.
The U.S. Trade Representative's office revealed Tuesday that it is investigating digital services taxes being either adopted or considered by a number of major economies including the U.K., Italy and Brazil, which could bring about fresh punitive tariffs and heighten global trade tensions.
On the data front, private sector jobs fell 2.76 million last month, according to a report Wednesday from ADP. The number was far less than the 8.75 million estimate.
Auctions will be held Wednesday for $40 billion of 105-day Treasury bills and $40 billion of 154-day bills.