Following the sharp pullback seen in the previous session, treasuries regained some ground during trading on Tuesday.

Bond prices moved to the upside early in the session and remained positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.7 basis points to 0.684 percent.

The rebound by treasuries came as stocks on Wall Street extended the drop seen in the two previous sessions, increasing the appeal of safe havens such as bonds.

Meanwhile, traders largely shrugged off the results of the Treasury Department’s auction of $50 billion worth of three-year notes, which attracted below average demand.

The three-year note auction drew a high yield of 0.170 percent and a bid-to-cover ratio of 2.28, 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.

The Treasury is due to announce the results of its auction of $35 billion worth of ten-year notes on Wednesday and the results of its auction of $23 billion worth of thirty-year bonds on Thursday.

The material has been provided by InstaForex Company –