NEW YORK, Jan 31 (Reuters) - U.S. Treasury yields slid Wednesday morning after a weaker than expected reading of private payrolls as investors awaited the closely-watched Federal Reserve interest rate decision.
The Federal Reserve two-day policy meeting will conclude this afternoon. Markets have priced in a near-certainty that the central bank will leave benchmark interest rates in their current range, though remain on edge to hear whether the Fed expects to begin cutting rates in March.
Futures markets are now pricing in a rate cut in May, later than earlier expectations of March at the beginning of the year.
Private payrolls increased by 107,000 jobs last month, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private payrolls rising 145,000. Job growth for December was revised lower as well.
The yield on 10-year Treasury notes was down 5.4 basis points to 4.003%, leaving it near two-week lows. The yield on the 30-year Treasury bond was down 3.6 basis points to 4.243%.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 7.2 basis points at 4.287%.
(Reporting by David Randall; Editing by Andrew Heavens)
