WASHINGTON (dpa-AFX) - Treasuries showed a strong move to the upside during trading on Wednesday, regaining ground after trending lower over the past several sessions.
Bond prices moved steadily higher as the day progressed, closing firmly into positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 7.3 basis points to 4.342 percent.
The ten-year yield gave back ground after closing higher for five consecutive sessions and ending Tuesday's trading at its highest closing level in almost a month.
The rebound by treasuries partly reflected bargain hunting as traders also kept an eye on the latest developments on the trade front.
A report from the Financial Times indicated European Union negotiators are closing in on a trade deal with the U.S. that would cement higher tariffs than those granted to the U.K.
Meanwhile, President Donald Trump posted several more letters to world leaders on Truth Social revealing plans to increase tariffs.
Trump posted letters sent to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka after posting letters sent to the leaders of 14 other leaders earlier in the week.
Treasuries saw further upside after the Treasury Department revealed this month's auction of $39 billion worth of ten-year notes attracted slightly above average demand.
The ten-year note auction drew a high yield of 4.362 percent and a bid-to-cover ratio of 2.61, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.58.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Meanwhile, the Federal Reserve released the minutes of its June monetary policy meeting, which revealed most participants generally agree the central bank is well positioned to wait for more clarity on the outlook for inflation and the economy before adjusting interest rates.
The Fed's 'wait and see' approach comes as participants said economic growth and the labor market remain solid and described monetary policy as moderately or modestly restrictive.
Trading on Thursday may be impacted by reaction to the Labor Department's report on initial jobless claims in the week ended July 5th.
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