Treasury yields moved higher on Wednesday as investors feared a new U.S. tax bill could worsen the country’s deficit following a Moody’s downgrade of the U.S. credit rating. At 6:57 a.m. ET, the 30-year Treasury bond yield was up over 6 basis points at 5.03%. The 10-year yield was more than 5 basis points higher at 4.537%. The 2-year yield advanced just over 2 basis points, reaching 3.994%. One basis point is equivalent to 0.01%, and yields and prices move in opposite directions. Investors are keeping an eye on discussions around U.S. President Donald Trump’s budget bill as some Republicans said they wouldn’t support the bill without larger deductions for state and local taxes. The bill could increase the U.S. government’s deficit — which has become a cause for alarm in the past week.
Source: Bonds
