2019.04.2415:16:00UTC+00Treasuries See Further Upside On Disappointing European Economic Data

Extending the upward move seen in the previous session, treasuries moved notably higher during the trading day on Wednesday.

Bond prices moved to the upside early in the day and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.8 basis points to 2.522 percent.

The continued strength among treasuries came amid concerns about the global economy following the release of disappointing European economic data.

German business confidence unexpectedly weakened in April to its lowest level in three years, survey data from the Ifo Institute showed.

The Ifo business climate indicator dropped to 99.2 from an upwardly revised 99.7 in March. Economists had expected the index to climb to 99.9 from March's original 99.6.

Separately, preliminary data from the statistical office INSEE showed French manufacturing confidence deteriorated for the first time in five months in April to its lowest level in over two-and-a-half years.

Treasuries remained firmly positive following the release of the results of the Treasury Department's auction of $41 billion worth of five-year notes, which attracted slightly above average demand.

The five-year note auction drew a high yield of 2.315 percent and a bid-to-cover ratio of 2.44, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.41.

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 finish off this week's series of long-term securities auctions on Thursday with the sale of $32 billion worth of seven-year notes.

Trading on Thursday may also be impacted by reaction to a pair of U.S. economic reports on weekly jobless claims and durable goods orders.