Treasuries Close Flat Following Lackluster Trading Session

(RTTNews) - Treasuries showed a lack of direction throughout the trading session on Tuesday after ending the previous session modestly higher.

Bond prices spent the day bouncing back and forth across the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day flat at 1.760 percent.

The lackluster performance by the bond market came amid another relatively quiet day on the U.S. economic front.

While the Commerce Department released a report showing a modest rebound in wholesale inventories in March, the data does not typically impact the markets.

The Commerce Department said wholesale inventories inched up by 0.1 percent in March after falling by a revised 0.6 percent in February. The report also showed a 0.7 percent increase in wholesale sales.

Traders also shrugged off a rally on Wall Street as well as the results of the Treasury Department's auction of $23 billion worth of three-year notes.

The three-year note auction drew a high yield of 0.875 percent and a bid-to-cover ratio of 2.93, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.99.

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

Trading on Wednesday may be impacted by reaction to the Treasury Department's auction of $23 billion worth of ten-year notes amid a lack of major U.S. economic data.