After turning higher over the course of morning trading on Wednesday, treasuries moved back to the downside in the afternoon to end the day in the red.
Bond prices slid firmly into negative territory going into the close, finishing the session at their worst levels of the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.5 basis points to 2.23 percent.
With the increase on the day, the ten-year yield more than offset the loss posted in the previous session, reaching its highest closing level in over a year.
The pullback by treasuries in afternoon trading came following the release of the results of the Treasury Department's auction of $21 billion worth of ten-year notes, which attracted below average demand.
The ten-year note auction drew a high yield of 2.209 percent and a bid-to-cover ratio of 2.53, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.83.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Following the lack of major U.S. economic data over the past few days, several reports are scheduled to be released on Thursday. Traders are likely to keep a close eye on the reports on retail sales and weekly jobless claims.
Bond trading could also be impacted by the results of the Treasury's auction of $13 billion worth of thirty-year bonds.
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