After trending higher over the past few sessions, treasuries moved back to the downside during the trading day on Monday.
Bond prices moved lower early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.8 basis points to 0.857 percent.
The pullback by treasuries came as traders reacted to additional upbeat news regarding a potential coronavirus vaccine.
AstraZeneca (AZN) announced the its vaccine candidate being developed in collaboration with Oxford University had an average efficacy of 70 percent.
The drug maker said one dosing regimen showed vaccine efficacy of 90 percent when given as a half dose, followed by a full dose at least one month apart, while another dosing regimen showed 62 percent efficacy when given as two full doses at least one month apart.
In other coronavirus-related news, the FDA has granted an emergency use authorization for Regeneron’s Covid-19 antibody treatment, while purportedly helped President Donald Trump fend off the disease.
Meanwhile, traders largely shrugged off mixed results from the Treasury Department’s auctions of two-year and five-year notes.
The Treasury’s auction of $56 billion worth of two-year notes attracted above average demand, while the auction of $57 billion worth of five-year notes attracted below average demand.
Trading on Tuesday may be impacted by reaction to the latest coronavirus-related news along with reports on home prices and consumer confidence.