Further speculation was fueled by a U.K. news article that suggested a halt in the Bank of Japan's foreign-exchange intervention, which began the pressure overnight. A draft of a bill to be voted on Thursday for an overhaul of government-sponsored enterprises also weighed on Treasury prices.
The technicals remained negative, so selling took prices lower. Retail was also a seller. Corporate bond sales of 5-year notes and 10-year notes, as well as asset reallocation into stocks, also was evident.
Treasuries were for sale all morning, helped further by large BUND sales that filtered into the Treasury market just ahead of the European close. But resting bids, however, cushioned the blow. Prices pared half the losses by the close.
Tomorrow's only economic release, consumer confidence, should have little impact.