Treasuries Climb Further Off Recent Lows Amid Sell-Off On Wall Street

(RTTNews) - Treasuries moved notably higher over the course of the trading day on Tuesday, further offsetting the sharp drop that was seen last Friday.

Bond prices showed a strong move to the upside in early trading and remained firmly positive throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 6.9 basis points to 2.126 percent.

With the drop on the day, the ten-year yield added to the loss posted on Monday, pulling back further off the last Friday's two-month closing high.

The continued strength among treasuries came amid a sell-off on Wall Street, with the Dow falling by nearly 300 points on the day.

Strength in the value of U.S. dollar weighed on stocks, with the greenback jumping to a twelve-year versus the euro.

Treasuries saw continued strength following the release of the results of the Treasury Department's auction of $24 billion worth of three-year notes, which attracted average demand.

The three-year note auction drew a high yield of 1.104 percent and a bid-to-cover ratio of 3.33, while the ten previous three-year note auctions had an average bid-to-cover ratio of 3.29.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Amid another quiet day on the U.S. economic front, trading on Wednesday could be impacted by reaction to the results of the Treasury Department's auction of $21 billion worth of ten-year notes.