By Kate Duguid
NEW YORK, Jun 2 (Reuters) – US Treasury yields were slightly lower on Wednesday, trading in a tight range as investors held back from making big moves ahead of employment data released this week. .
* On Thursday the private contracting according to ADP will be known and on Friday the non-agricultural payrolls for the month of May that the Government will publish.
* The 10-year paper yield was down 2.4 basis points at 1.591%. The benchmark return has been trading within a 1.55% to 1.64% range for over a week.
* The 2-year yield on paper, reflecting expectations about interest rate hikes in the United States, has remained anchored since the Federal Reserve cut rates to near zero last year. The return was less than half a basis point at 0.145%.
* Following weaker-than-expected payroll figures in April, May data will provide key insights on the stability of the US job market recovery.
* While the data has shown signs that the reopening is boosting growth, the rebound in employment has been less robust.
* “I think that (the return of the papers to) 10 years will be in a range of 1.58% to 1.64% until at least the ADP figures tomorrow and, more likely, (until) the unemployment report on Friday “said Andy Brenner of NatAlliance Securties.
* “I believe that higher rates will be reached, but nothing will be done from here to the unemployment report.”
* Later Wednesday, the Fed will publish its Beige Book report, a summary of the state of business in the central bank’s 12 regional districts.
(Reporting by Kate Duguid. Edited in Spanish by Janisse Huambachano)
