US Treasuries Edge Higher With Traders Split Over Fed Rate Cut

Treasuries are on course for their first back-to-back gains of the month, edging higher amid a selloff in stocks and fresh signs of weakness in the US labor market.

The yield two-year notes — among the most sensitive to changes in monetary policy expectations — fell about two basis points to 3.59%.

ADP Research said Tuesday US companies shed 2,500 jobs per week on average in the four weeks ended Nov. 1. But traders are largely divided over whether the Federal Reserve will cut interest rates again next month. Swaps now imply a less-than-50% likelihood of a reduction.

Several policymakers ...