NEW YORK (CNN/Money) - Bonds rode the center line Wednesday as high oil prices and a weak employment report canceled out strong reports of growth in the service industry and in factory orders. Treasurys would have closed much higher had oil not eased a bit late in the day.

The dollar was mixed against the euro and yen.

At about 4:30 p.m. ET, the benchmark 10-year Treasury inched up 1/32 of a point to 102-17/32 to yield 4.43 percent, unchanged from late Tuesday. The 30-year bond also rose 1/32 of a point to 102-30/32 to yield 5.17 percent, also unchanged from late Tuesday.

The two-year note remained unchanged at 100-6/32 of a point, yielding 2.65 percent, and the five-year note also went nowhere at 99-29/32, yielding 3.64 percent.

U.S. oil prices hit yet another record high, touching $44.28 before settling below $43, fanning concerns that consistently high prices will be a drag on global economic growth.

High energy prices were a principal reason why U.S. consumer spending in June fell at the fastest rate since September 2001, according to government data released Tuesday.

Bond traders like poor economic news, because it eases fears of rising inflation, which erodes the value of the fixed-income investment.

Bond prices initially dipped after the Institute for Supply Management index of service sector activity rebounded to 64.8 in July from 59.9 in June. But attention shifted to a sharp drop in the survey's employment component, which sagged to 50.0 from 57.4 in June. One trader noted it was the sharpest month-to-month drop in the index's seven-year history.

"There is a big catch to this month's report: Employment is down -- way down," said Jason Shenker, economist at Wachovia Securities in Charlotte, North Carolina.

A weak jobs number on Friday would deal a blow to the Federal Reserve's running theory that a June slowdown in hiring was a temporary aberration, perhaps forcing the central bank to slow the pace of monetary tightening.

Nonetheless, the strong showing in the services sector, combined with a jump in factory orders that exceeded analysts' predictions by .2 percent, held bonds to the middle ground.

In currency trading, the euro bought $1.2043, down from $1.2050 late Tuesday, and the dollar bought ¥111.20, down from ¥110.57.