Basis Points

Automatic Data Processing Inc.: Yields and bond prices move in opposite directions, according to Market Watch. The Beige Book, a compilation of economic anecdotes from the central bank individual districts, offered a mixed bag for policy makers ahead of a Sept. 16-17 meeting of Fed policy makers. The yield on the benchmark 10-year U.S. Treasury note TMUBMUSD10Y, -0.16% rose 2 basis points to 2.193%. The yield on the two-year note TMUBMUSD02Y, -0.53% rose less than half of a basis point to 0.720%. A basis point is 1/100 of a percentage point. Earlier, investors digested a rise of 190,000 in August private-sector payrolls reported by Automatic Data Processing Inc. and a large upward revision to second-quarter productivity data. There is a very strong correlation between equity markets and the front end of the U.S. rate curve, wrote Kit Juckes, global macro strategist at Société Générale. Bond traders were likely taking cues instead from the U.S. stock market, which bounced back from steep losses scored on Tuesday as China market turmoil subsided. (news.financializer.com). As reported in the news.