Treasuries Move Back To The Downside Amid Strength On Wall Street

(RTTNews) - Treasuries moved back to the downside during trading on Wednesday, nearly offsetting the strength seen in the previous session.

After coming under pressure in morning trading, bond prices regained some ground in the afternoon but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.2 basis points to 1.580 percent.

The weakness among treasuries came as stocks rebounded following the pullback that was seen in the previous session.

The gains on the day lifted the Dow and the S&P 500 to new record highs, while the tech-heavy Nasdaq showed an even stronger upward move to reach its best levels of 2016.

Stocks benefited from a positive reaction to better than expected quarterly results from big-name companies such as Microsoft (MSFT) and Morgan Stanley (MS).

However, treasuries climbed off their worst levels going into the close ahead of the European Central Bank's monetary policy meeting on Thursday.

The ECB, which is meeting for the first time since the Brexit vote, is expected to leave policy unchanged but offer signals that additional stimulus is coming.

Following several quiet days on the U.S. economic front, trading on Thursday may also be impacted by the release of reports on weekly jobless claims, existing home sales, and Philadelphia-area manufacturing.

The Treasury Department is also scheduled to announce the details of next week's auctions of two-year, five-year and seven-year notes.