2019.10.2319:22:00UTC+00Treasuries Pull Back Off Best Levels But Close Slightly Higher

Treasuries extended yesterday's late-day advance in early trading on Wednesday but gave back ground over the course of the session.

Bond prices pulled back well off their best levels of the day before finishing the session slightly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by nearly a basis point to 1.759 percent.

The lackluster close by treasuries came as traders seemed reluctant to make significant moves amid a quiet day on the U.S. economic front.

Traders may have been looking ahead to the release of reports on durable goods orders, new home sales, and weekly jobless claims on Thursday.

A lack of major developments on the Brexit and U.S.-China trade deal fronts may also have helped keep traders on the sidelines.

Meanwhile, traders largely shrugged off the results of the Treasury Department's auction of $41 billion worth of five-year notes, which attracted modestly above average demand.

The five-year note auction drew a high yield of 1.570 percent and a bid-to-cover ratio of 2.41, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.35.

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 $32 billion worth of seven-year notes on Thursday.