Treasuries Show Modest Move Back The Upside

(RTTNews) - Treasuries showed a modest move to the upside during trading on Monday, regaining some ground after trending lower over the past few sessions.

Bond prices moved higher early in the session and remained in positive territory throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.2 basis points to 1.481 percent.

The uptick by treasuries came despite continued strength on Wall Street, as stocks continued to benefit from easing concerns about the Omicron variant of the coronavirus.

Treasuries may have benefited from the results of the Treasury Department's auction of $56 billion worth of two-year notes, which attracted modestly above average demand.

The two-year note auction drew a high yield of 0.769 percent and a bid-to-cover ratio of 2.55, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.51.

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, the Treasury is due to announce the results of this month's auctions of $57 billion worth of five-year note and $56 billion worth of seven-year notes on Tuesday and Wednesday, respectively.