Treasuries Resume Downward Trend Amid Sell-Off On Wall Street

(RTTNews) - Following the Columbus Day holiday on Monday, treasuries moved to the downside during trading on Tuesday.

After coming under pressure in early trading, bond prices regained some ground but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.3 basis points to 1.759 percent.

With the increase on the day, the ten-year yield resumed its recent upward trend, reaching its highest closing level in over four months.

The weakness among treasuries came amid a sell-off on Wall Street, with stocks under pressure following disappointing earnings news from aluminum giant Alcoa (AA).

Alcoa unofficially kicked off the earnings season by reporting third quarter earnings and revenues that came in below analyst estimates.

A pullback by the price of crude oil along with an increase in the value of the U.S. dollar also weighed on treasuries.

Trading on Wednesday may be impacted by reaction to the minutes of the latest Federal Reserve meeting, which may shed some additional light on the outlook for monetary policy.

Bond traders are also likely to keep an eye on the results the Treasury Department's auctions of $24 billion worth of three-year notes and $20 billion worth of ten-year notes.