Treasuries Close Nearly Flat Following Choppy Trading Day

(RTTNews) - After moving notably higher over the course of the previous session, treasuries showed a lack of direction during trading on Tuesday.

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, inched up by less than a basis point to 2.379 percent.

The choppy trading on the day came amid a relatively quiet day on the U.S. economic front, with traders looking ahead to reports on producer prices and retail sales due on Friday.

Traders largely shrugged off the results of the Treasury Department's auction of $24 billion worth of three-year notes, which attracted above average demand.

The three-year note auction drew a high yield of 1.472 percent and a bid-to-cover ratio of 2.97, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.79.

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 economic calendar, trading on Wednesday may be impacted by reaction to the Treasury's auctions of $20 billion worth of ten-year notes.