U.S. Treasurys prices turned flat on Wednesday, as encouraging U.S. data overwhelmed the impact of political uncertainty in Europe and turmoil in the Middle East that sent investors scampering for the safety of government debt.
Ahead of a blitz of U.S. data, bond yields, which trade opposite of prices, fell. Portugal's deepening political woes -- and fears about China's slowing economy -- sent European yields soaring, prompting traders to seek haven in the relative security of U.S. government bonds. Unrest in Egypt threatens to topple the government, which has sent oil prices soaring and also sparked demand for safe-haven assets like gold and the U.S. dollar.
Yet the bond rally was squelched by data showing private companies hired 188,000 new workers in June, considerably better than expectations, indicating the job market continues to heal slowly, according to a report from ADP. That helped stock futures cut their losses, diminishing the allure of Treasurys.
The benchmark 10-year Treasury note rose 3/32 in early U.S. trading, to yield 2.468 percent. The 30-year bond rose 2/32 in price to yield 3.475 percent.