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Treasuries Move To The Downside Amid Easing Coronavirus Concerns

Treasuries showed a notable move to the downside during trading on Monday, more than offsetting the advance seen in the previous session.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 8.9 basis points to 0.676 percent.

The pullback by treasuries came as the reported death tolls in some of the world’s coronavirus hot spots showed signs of easing over the weekend.

The number of coronavirus-related deaths in New York State fell to 594 on Sunday from 630 on Saturday, reflecting the first daily decrease.

President Donald Trump warned the country could be headed into its “toughest” week but expressed hope the country was seeing a “leveling off” of the coronavirus crisis.

Reports of decreases in the number of new infections and deaths in European countries like Italy and Spain also reduced the appeal of bonds.

Meanwhile, the Treasury Department revealed that its auction of $40 billion worth of three-year notes attracted below average demand.

The three-year note auction drew a high yield of 0.348 percent and a bid-to-cover ratio of 2.27, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.46.

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 its auction of $25 billion worth of ten-year notes on Tuesday and the results of its auction of $17 billion worth of thirty-year bonds on Wednesday.

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