U.S. Treasurys sold off Tuesday afternoon, pushing yields to their biggest single-day jump since mid-May. Yields on the 10-year Treasury note surged 9.1 basis points, driving the benchmark bond to 1.525%, representing its highest level since June 24--the day following Britain's referendum to secede from the European Union roiled global markets.Tuesday's rise marked the sharpest daily climb in the 10-year's yield since May 18, according to Dow Jones data. Bond prices move inversely to yields. On Tuesday, selling in Treasurys accelerated, lifting yields from record lows, following an auction of $20 billion in 10-year notes, which was met with tepid demand. Poor Treasury auctions can weigh on the yields of Treasurys in the secondary market. Treasurys had been bid up over the past several weeks as ultralow interest rates world-wide have encouraged buying by foreign bidders chasing relatively richer yields in the U.S. However, a rally in U.S. equities over the past three sessions has put pressure on yields and may highlight a shift in bond-buying sentiment, as investors rotate out of government bonds considered safe and into relatively riskier, but rapidly rising, stocks. The Dow Jones Industrial Average and the S&P 500 index both were trading at intraday records and were on pace to finish at their best levels ever on Tuesday. Since the beginning of the week, the yield on 10-year note has risen the most over a two-day period, up 15.9 basis points, since the period ended Dec. 7 2015, Dow Jones data show. Despite big gains over the past two sessions, 10-year yield remain well below the 1.75% level before the June 23 Brexit referendum.
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