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Treasury yields looked set to rise for a third straight session Wednesday after a strong reading on February service-sector activity.

Yields initially moved lower after weaker than expected ADP data hinted that Friday’s nonfarm payrolls release could be weaker than economists expect. The yield on the 10-year note rose to 2.126%, up 0.4 basis point on the day, after falling as low as 2.094%, according to Tradeweb data.

The two-year note yield was down 0.8 basis point to 0.674%, after falling as low as 0.667%.

The yield on the 30-year bond rose 1.2 basis points to 2.722%.

Bond yields move inversely to prices.

The ADP labor market report showed that the private sector added 212,000 jobs in February, indicating less-than-expected growth in the labor market ahead of Friday’s official jobs report.

Investors watch labor data closely as job growth could play a key role in the Federal Reserve’s potential interest rate hike decision in June.

“It’s a remarkably as-expected release that has had no meaningful impact on the Treasury Market,” said Ian Lyngen, senior rates strategist at CRT Capital Group, in a Wednesday research note.

ADP reported that the private sector added 212,000 jobs in February, below January’s revised 250,000, originally reported at 213,000.

The ADP data came in below a consensus estimate of 220,000 jobs added, from analysts polled by The Wall Street Journal. The number was effectively flat compared to 213,000 in December, said Lyngen.

But shortly afterwards, the ISM report showed that the non-manufacturing index unexpectedly improved to 56.9 in February from 56.7 Jan, well above the 56.5 estimated consensus, Lyngen said.

Prices paid increased to 49.7 from 45.5 in January, but still below 50, reflecting the lowest energy costs.

“Overall, it was a moderately better release that was further supported by gains in employment,” said Lyngen.

ADP’s report is viewed as an indication of the Labor Department’s employment report, which includes private and government sector jobs and will be released this coming Friday.

The January jobs report ( was the best since 1997. It showed the U.S. economy added more than one million new jobs over a three-month span.

Fed Chair Janet Yellen highlighted the key role job growth will play in any interest rate hike decision, during her February testimony before Congress.

Treasury yields have been moving higher since Feb. 2, with the yield on the 10-year note rising toward a fresh year-to-date high above 2.152%.