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Treasuries Move Notably Lower Amid Rebound On Wall Street

After turning lower over the course of the previous session, treasuries saw further downside during trading on Tuesday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6.8 basis points to 1.487 percent.

The weakness among treasuries came as stocks on Wall Street showed a significant rebound following recent weakness.

The steep drop seen during trading on Monday dragged the tech-heavy Nasdaq down to its lowest closing level in over two months.

Treasuries also moved lower following a report from Moderna (MRNA) about the effectiveness of a booster dose of its Covid-19 vaccine against the Omicron variant.

Moderna announced that a booster dose of its Covid-19 vaccine increased antibody levels against Omicron.

The currently authorized 50 microgram booster dose increased neutralizing antibody levels against Omicron approximately 37-fold compared to pre-boost levels, Moderna said.

Meanwhile, the Treasury Department revealed this month's auction of $20 billion worth of twenty-year bonds attracted well above average demand.

The twenty-year bond auction drew a high yield of 1.942 percent and a bid-to-cover ratio of 2.59, while the ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.34.

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

Looking ahead, trading on Wednesday may be impacted by reaction to reports on consumer confidence and existing home sales.

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