The eighth consecutive day of 10-year yields rising - ANZ

Analysts at ANZ explained that treasuries were weaker and the USD started to firm ahead of the ADP employment figures, and a booming report that extended market moves. 

Key Quotes:

"The strong ADP number bodes well for Friday’s non-farm payrolls as since the methodology was tweaked late last year, the difference between the two measures has averaged only about 15k, compared to 45k in the three years prior. Treasuries were hit across the curve with the 2-year yield rising 2bps to 1.35% and the 10-year yield up 4bps to 2.55%. This marks the eighth consecutive day of 10-year yields rising. 

The market has now priced in about 66bps of Fed tightening in 2017.

In the UK, the rise in yields was capped by a reduction in debt issuance announced at the Budget overnight. US equities were little changed with stronger cyclicals offsetting declines in defensive stocks. In commodities, gold was hit by the stronger data, falling 0.4%, while oil fell sharply late in the session (Brent down 4.7%) on an EIA report that showed US inventories rising for the 11th time in 12 weeks."