Treasury yields rose on Wednesday amid reports that researchers had made progress in coming up with cures and treatments for the rapidly spreading coronavirus. The rise was extended after an estimate of private-sector jobs growth.

The 10-year Treasury note yield TMUBMUSD10Y, +0.00% rose 4.6 basis points to 1.649%, its highest since Jan. 24, while the two-year note rate TMUBMUSD02Y, +0.00% was up 2.6 basis points to 1.441%. The 30-year bond yield TMUBMUSD30Y, +0.00% climbed 5.1 basis points to 2.132%.

Some of the coronavirus fears abated amid efforts by scientists to develop drugs to counter the virus. Researchers at Zhejiang University said they found an effective drug to treat coronavirus patients, according to a Chinese newspaper. A British team of scientists have also claimed that they shortened a part of the development time for a vaccine.

Still, the World Health Organization has said that there are no known effective therapeutics against the virus, in response to the media reports.

The number of coronavirus cases have continued to march higher. Chinas National Health Commission reported more than 24,000 confirmed cases and 490 deaths within the country.

Traders faced a rush of economic data in the morning. Automatic Data Processing said the U.S. economy added 291,000 private-sector jobs in January. The December trade deficit fell 1.7% in 2019, its first annual decline in six years, reflecting the impact of U.S. tariffs on Chinese goods.

The Institute for Supply Management reported its January nonmanufacturing index rose to a six-month high of 55.5%, from 54.9% last month. Any number above 50% reflects an expansion in economic activity.

As for the Federal Reserve, Gov. Lael Brainard will speak later, at 4:10 p.m. Eastern. San Francisco Fed President Mary Daly said in an interview with CNBC she did not expect the impact of the coronavirus on the U.S. economy to be material.

Traders of fed fund futures had started to price in increased odds of a rate cut this year following the pathogens outbreak, but improving manufacturing data has weighed on the case for further monetary easing.

The Treasury Department announced it would bring back the 20-year bond this year, but details on the timing and size of the auctions wont be forthcoming until May.

Tremendous selling hit [Treasury] prices early this morning on China reports of promising early results from a treatment for coronavirus. Headlines that it was a vaccine sparked the stampede as a vaccine would imply quarantines could ease faster than expected, wrote Jim Vogel, an interest-rate strategist at FHN Financial.

Broadly, the American economy and the developed economies of the world dont need China as a demand driver, as much as they use it as a supply driver. That makes a Chinese slowdown from the coronavirus a bit more easier to deal with, especially if it lasts for only a couple of months, said Tom Graff, head of fixed-income at Brown Advisory, in an interview with MarketWatch.

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Treasury yields climb on reports of progress toward virus treatment - MarketWatch