The Yield on 10-year government bonds The price fell after briefly hitting a new annual high on Wednesday.
The key interest rate fell by almost 2 basis points to 4.349%. At one point, the yield reached its highest level until the end of November.
The 2-year Treasury note yield lost almost 3 basis points and was last at 4.674%.
Yields and prices move in opposite directions. One basis point is equal to 0.01%.
ADP private payroll data released Wednesday morning showed stronger growth than expected. Companies added 184,000 workers in March, higher than the 155,000 estimate by economists in a Dow Jones survey. It also marked the fastest pace of growth since July 2023.
The market moves come as investors track economic data and closely monitor cues from Fed policymakers on the expected number of interest rate cuts in 2024. Traders see a nearly 99% chance that interest rates will remain unchanged at the Fed's May policy meeting, according to CME Fed WatchTool, as of Wednesday afternoon. They expect a 62.5% chance of a cut at the June meeting, a significant drop from 70.1% a week ago.
Atlanta Fed President Raphael Bostic said he expects only one rate cut this year, in the fourth quarter. Fed Chairman Jerome Powell said in the afternoon that the central bank needed more evidence of easing inflation before it could cut borrowing costs.
Cleveland Federal Reserve President Loretta Mester said Tuesday she expects to continue cutting interest rates this year, but ruled out implementing them at the next policy meeting in May.
Separately, San Francisco Fed President Mary Daly said she expects to cut interest rates this year, but only after there is more convincing evidence that inflation has been subdued.
Last month, the Federal Reserve met expectations and left monetary policy unchanged for the fifth straight day and kept its benchmark federal funds rate in a range of 5.25% to 5.5%.
The Fed also signaled at the time that it continues to expect interest rate cuts of three quarters of a percentage point by the end of the year.
—CNBC's Jeff Cox contributed to this report.
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