Significant growth in the manufacturing sectors in the United States and in China was favorable for the shares market, but a suction pump for the bond market.

Investors were reported to have dropped out of the bond market on Wednesday. Bond rates went up sharply and remained at a point for the rest of the afternoon. The rates prompted the yield on the 10-year Treasury note to rise to 2.58 percent in afternoon trading.

Ten-year note prices went down 90.625 cents to $100.406 while two-year note prices slid 6.25 cents to $99.719. In effect, the yield on the two-year note rose to 0.51 percent from 0.48 percent.

The price for the 30-year bond dipped $2.405 to $104.063 causing a rise in yield from 3.52 percent to 3.65 percent. The 3-month T-bill yield went down to 0.12 percent from 0.13 percent.

The increase from Tuesday's 2.47 percent helps determine interest rates on mortgages and other kinds of loans. Wednesdays' pull out is the second since last week's dive in bond prices. The trigger for last week's sell off was data showing a slower than expected US economic growth in the second quarter.

FTN Financial debt analyst Jim Vogel claims, the “GDP is an old number” but manufacturing growth spells a favorable overall GDP for the third quarter. Vogel points at the August employment data to be released on Friday as the latest determiner for bond prices.