(RTTNews) – Treasuries rose sharply on Wednesday’s trading day, following the upward trend seen in recent sessions.
Bond costs showed a stable upward movement as the day progressed, finally firmly in the territory. Subsequently, the yield on the benchmark ten-year bond fell nine core issues to 1. 52 and nine%.
The ten-year yield closed down for a fourth straight session, moving away from last Thursday’s final five-month high.
The continued strength of Treasuries came after the Bank of Canada announced it was ending quantitative easing.
The Bank of Canada is following several central banks around the world that have recently begun to reduce pandemic stimulus.
Following its financial policy meeting next week, the Federal Reserve would likely announce its goal of starting to cut its asset purchases.
Treasuries rose again after the Treasury Department revealed that this month’s auction of $61 billion in five-year notes also attracted above-average demand.
The five-year bond auction generated a maximum yield of 1. 157% and a bid-to-hey ratio of 2. 55, while the last ten five-year bond auctions had an average bid-to-hedging ratio of 2. 36.
Meanwhile, bond investors largely ignored a Commerce Department report indicating that durable goods orders fell far less than expected in September.
The Commerce Department said durable goods orders fell 0. 4 in September after a downwardly revised 1. 3 jump in August.
Economists had expected durable goods orders to fall 1. 1 from the high of 1. 8 reported last month.
Excluding a sharp drop in shipping equipment orders, durable goods orders rose 0. 4% in September after a 0. 3% increase in August. The accumulation is in line with economists’ estimates.
Bond investors are also likely to be watching for the effects of the Treasury auction of $62 billion in seven-year notes.