Treasuries Pull Back Further Off Recent Highs Amid Easing Brexit Worries

(RTTNews) - Treasuries showed a notable move to the downside during trading on Monday, pulling back further off their recent highs.

Bond prices came under pressure in early trading and remained firmly negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.2 basis points to 1.670 percent.

With the increase, the ten-year yield continued to rebound after ending last Thursday's trading at its lowest closing level in almost four years.

The continued weakness among treasuries reflected easing concerns about Thursday's referendum on whether Britain will remain in the European Union.

Polls released over the weekend suggested that British voters narrowly support keeping the U.K. as a member of the EU.

The results of the latest polls reflected a turnaround from other surveys showing voters in favor of the so-called Brexit.

Treasuries remained stuck in the red following the release of the results of the Treasury Department's auction of $26 billion worth of two-year notes, which attracted below average demand.

The two-year note auction drew a high yield of 0.745 percent and a bid-to-cover ratio of 2.72, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.94.

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 Tuesday may be impacted by reaction to Federal Reserve Chair Janet Yellen's semi-annual testimony before the Senate Banking Committee.

The Treasury Department is also due to continue this week's series of long-term securities auctions with the sale of $34 billion worth of five-year notes.