Treasuries moved moderately lower during trading on Wednesday, offsetting the modest uptick seen over the course of the previous session.
Bond prices moved to the downside in early trading and remained in the red for the remainder of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 2.062 percent.
The initial pullback by treasuries came amid strength in the overseas stock markets, which led to an early rally on Wall Street.
Selling pressure remained somewhat subdued, however, as traders seemed reluctant to make any significant moves amid a lack of major U.S. economic data.
Treasuries remained in negative territory following the release of the results of the Treasury Department’s auction of $21 billion worth of ten-year notes.
The ten-year note auction drew a high yield of 2.066 percent and a bid-to-cover ratio of 2.59, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.68.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Finishing off this week’s series of long-term securities auctions, the Treasury is due to sell $13 billion worth of thirty-year bonds on Thursday.
Trading on Thursday may also be impacted by a report on weekly jobless claims as well as the minutes of the latest Federal Reserve meeting.
The material has been provided by InstaForex Company – www.instaforex.com