Investors wait for October private payrolls data, causing Treasury yields to decrease.

On Wednesday, U.S. Treasury yields were lower, indicating that investors were anticipating further economic data to inform their assessment of the rate cut outlook.

The 10-year Treasury yield dropped more than 4 basis points to 4.232%, after briefly surpassing 4.3% in the previous session, reaching its highest level since July. Meanwhile, the 2-year Treasury yield decreased by over 2 basis points to 4.094%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

On Wednesday, investors will closely watch new economic data before the highly anticipated October jobs report is released at the end of the week.

The Commerce Department will release the first preliminary reading of U.S. third-quarter gross domestic product data after the ADP employment report for October is published at 8:15 a.m. ET.

On Wednesday morning, both advance economic indicators for September and pending home sales for September will be released.

According to CME Group's FedWatch Tool, traders are predicting a quarter-point rate cut from the Federal Reserve next week.

In September, the Fed and other major central banks eased monetary policy by lowering rates by 50 basis points.

During their upcoming meeting on Nov. 6-7, policymakers will not be discussing their general policy and economic expectations as they are in a "blackout period" and will not be making remarks based on the data releases.