Treasuries Show Another Notable Move To The Downside

(RTTNews) - Treasuries showed a notable move to the downside during trading on Wednesday, extending the pullback seen in the previous session.

Bond prices came under pressure early in the session and slid more firmly into the red as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.0 basis points to 3.968 percent.

The extended pullback by treasuries came as traders continued to cash in on the recent strength in the bond market, which saw the ten-year yield fall to its lowest levels since last December.

Treasuries saw further downside as the Treasury Department revealed this month's auction of $42 billion worth of ten-year notes attracted below average demand.

The ten-year note auction drew a high yield of 3.960 percent and a bid-to-cover ratio of 2.32, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.52.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Trading on Thursday may be impacted by reaction to a report on weekly jobless claims, while the results of the Treasury's auction of $25 billion worth of thirty-year bonds may also attract attention.