WASHINGTON (dpa-AFX) - Treasuries moved notably lower during trading on Wednesday, extending the pullback seen over the course of the previous session.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 7.1 basis points to 1.208 percent.
Treasuries saw further downside as traders continued to cash in on the rally seen on Monday, which dragged the yield on the ten-year note down to its lowest closing level in over five months.
Continued strength on Wall Street also weighed on the bond markets, as stocks extended the rebound seen in the previous session.
Treasuries remained firmly negative as the Treasury Department revealed this month's auction of $24 billion worth of twenty-year bonds attracted average demand.
The twenty-year bond auction drew a high yield of 1.890 percent and a bid-to-cover ratio of 2.33, while the ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.35.
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 a quiet day on the U.S. economic front, trading on Thursday may be impacted by reaction to reports on weekly jobless claims, existing home sales and leading economic indicators.
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