Extending the downward trend seen over the past several sessions, treasuries showed a notable decline during trading on Wednesday.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, advanced by 4.1 basis points to 3.024 percent.
The ten-year moved higher for the sixth consecutive session, closing above the key 3 percent level for the first time in well over four years.
The continued weakness among treasuries reflected recent downward momentum, as the drop came amid a lack of major U.S. economic data.
Concerns rising inflation may lead the Federal Reserve to hike interest rates faster than previously expected have recently weighed on treasuries.
Meanwhile, traders largely shrugged off the results of the Treasury Department’s auction of $35 billion worth of five-year notes, which attracted average demand.
The five-year note auction drew a high yield of 2.837 percent and a bid-to-cover ratio of 2.49, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.47.
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 finish off this week’s series of long-term securities auctions with the sale of $29 billion worth of seven-year notes on Thursday.
Trading on Thursday may also be impacted by reaction to U.S. economic reports on weekly jobless claims and durable goods orders.