Treasuries Extend Pullback Amid Strength On Wall Street

(RTTNews) - Extending the pullback seen in the previous session, treasuries move notably lower over the course of the trading day on Tuesday.

Bond prices came under pressure early in the session and saw further downside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its prices, jumped by 7.9 basis points to 1.513 percent.

The continued weakness shown by treasuries came as stocks moved notably higher, driving the Dow and the S&P 500 to new record highs.

Stocks benefited from recent upward momentum amid optimism that Britain's vote to leave the European Union will lead to increased stimulus.

Treasuries remained stuck in the red following the release of the results of the Treasury Department's auction of $20 billion worth of ten-year notes, which attracted slightly below average demand.

The ten-year note auction drew a high yield of 1.516 percent and a bid-to-cover ratio of 2.33, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.40.

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

On Wednesday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $12 billion worth of thirty-year bonds.

Trading on Wednesday may also be impacted by reaction to a report on import and exports prices as well as the Federal Reserve's Beige Book.