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Treasury bonds pulled back on Wednesday as the faster pace of expansion in the U.S. service sector sapped demand for haven bonds. The selling in the Treasury bond market was kept in check by data showing disappointing jobs growth in the U.S. private sector.

In recent trading, the benchmark 10-year note was 3/32 lower, yielding 2.287%, according to Tradeweb. Yields rise as prices fall. The yield was 3% at the start of January.

The monthly gauge of the service sector from the Institute for Supply Management rose to 59.3 last month, the latest signal the U.S. economy has gained traction.

But the employment component of the ISM report fell to 56.7 last month from 59.6 in October. A separate release earlier Wednesday showed private payrolls in the U.S. rose by 208,000 jobs in November, lower than the 223,000 forecast by economists.

The Federal Reserve ended its monthly bond buying program in October amid signs of an improving economy. Officials have signaled patience in raising interest rates given weaker growth overseas, falling commodities prices since the summer and tame wage inflation in the U.S.

Fed Vice Chairman Stanley Fischer on Tuesday said the central bank is getting closer to dropping its pledge of keeping interest rates low for a “considerable time,” though he said the rate-increase timing hinges on upcoming economic data.

The ADP report hasn’t proved to be an accurate predictor for nonfarm payrolls, a broader gauge of U.S. employment and a main data point closely monitored by the Fed in setting interest rates. Economists expect Friday’s employment report to show 230,000 new jobs last month following a gain of 214,000 in October.

The 10-year Treasury yield has fallen this year even as the U.S. economy has strengthened and the Fed has wound down its bond purchases. The European Central Bank and the Bank of Japan have stepped up monetary stimulus, and the liquidity has sent global bond yields lower.

U.S. bonds offer higher yields compared with most of the developed world. A rising dollar has increased the allure of U.S. assets to foreign buyers.

The 10-year yield tumbled by 0.15 percentage points last week, the most on a weekly basis since September 2013. Earlier Monday, it fell to a five-week low of 2.15%.

Yields have risen over the past two sessions as investors booked profit from the recent rally. Robust corporate bond sales ahead of the winter holiday season have also sent Treasury yields higher. Investment-grade corporate bonds offer juicier yields compared to Treasury debt, drawing investors amid lower global bond yields.

“Treasury yields are not going to rise sharply in this low global rate and low inflation environment,” said Brian Edmonds, head of interest rates at Cantor Fitzgerald LP in New York.

The interest rate futures markets indicate that investors don’t expect the Fed to raise rates until the second half of 2015.

Some traders say the Fed could raise rates sooner than investors expect if the economy accelerates or if inflation rears its ugly head, which would push down Treasury prices and send yields higher.