US 10-year Treasury yield held near 4.45%, holding in a tight range ahead of the US nonfarm payrolls data due on Friday. Debt markets are tracking US economic cues and also remained focused on the massive budget bill passed by House lawmakers last month and how it will impact the US government debt obligations in long term.
A slightly lax action was seen in other global bond markets with the benchmark German 10-year bonds yielding around 2.52% mark, not far from its three-week low. Business activity fell across Germany's service sector for the second month in a row and at the quickest rate for two-and-a-half years in May, the latest HCOB PMI survey showed. May saw the HCOB Germany Composite PMI Output Index fall to 48.5, down from 50.1 in April and its first reading below the neutral 50.0 threshold since December last year.