NEW YORK (MarketWatch) -- Treasurys were mostly lower on Wednesday, sending yields higher, after U.S. reports that showed private-sector jobs fell at a slower pace and the service sector of the economy improved in December. The benchmark 10-year Treasury bond (UST10Y 3.81, +0.05, +1.28%) fell and its yield rose 4 basis point to 3.797%. Yields on the two-year notes (UST2YR 1.03, +0.02, +1.88%) gained 3 basis point to 1.048%. Private-sector firms in the U.S. eliminated 84,000 jobs in December, the 23rd decline in a row, according to the ADP employment report. "Employment losses are now rapidly diminishing and, if recent trends continue, private employment will begin rising within the next few months," ADP said in a release. In November, a revised 145,000 jobs were lost, compared with the 169,000 originally reported, ADP said. Read more on private-sector employment. The report comes ahead of Friday's official employment report, which includes non-private-sector jobs, from the Labor Department. Economists surveyed by MarketWatch are looking for payrolls to rise by 10,000, the first gain in two years. "The ADP figure has undershot payrolls in each of the last seven months," analysts at Action Economics said. Separately, the Institute for Supply Management said its nonmanufacturing index rose to 50.1% from 48.7% in November. Economists surveyed by MarketWatch were looking for the index to rise to 51.0%. But the ISM's closely watched employment index rose to 44.0% in December from 41.6% in November. Treasurys rose Tuesday, sending yields lower, after the latest round of U.S. economic reports, including a plunge in pending-home sales and a bigger-than-expected gain in factory orders in November, did little to change expectations that the Federal Reserve will keep interest rates at ultra-low levels for some time.

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