Treasuries-yields mostly steady following benign refunding, soft private employment print

Also on Wednesday, the Treasury Department said it will hold its coupon issuance and floating-rate note issuance steady "for at least the next several quarters," a decision that is expected to soothe concerns about the scale of U.S. debt issuance and its impact on bond prices. The Treasury's announcement confirms analysts’ expectations that increases in auction sizes won't arrive until next year.

"It's a positive for the rates market," said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities. "We're not expecting auction size increases until the middle of 2027. So we're currently expecting that guidance to be changed in November, and the first auction size increases to start in May of 2027.

"That said, our risk to those timelines is actually to later because the Treasury could keep prioritizing bills for longer than anticipated. So it's all fairly positive. There were at least some investors who were looking for a change in guidance this time around, which I think should help the Treasury market breathe some relief."

The Treasury also said it will sell $125 billion next week as part of the quarterly refunding. This will include $58 billion in 3-year notes, $42 billion in 10-year notes and $25 billion in 30-year bonds.