3/22/2017, 7:05 PM (Source: TeleTrader)
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Treasuries continue rise on Trump policy worries

United States government bonds extended gains on Wednesday, as investors remained concerned about President Donald Trump's ability to fulfill his campaign promises and implement proposed business-friendly policies.

Many analysts fear that the failure of the House of Representatives to pass the Obamacare replacement bill on March 23 would derail the president in implementing all of his other economic policies. Adding to the sentiment is the Federal Reserve's interest rate hike earlier this month, which was seen by many as more dovish than expected, especially in relation to rather hawkish comments given by central bankers in late February.

The yield on 10-year Treasuries slipped 2.69 basis points to 2.3906% at 7:01 pm CET, while the yield on two-year bonds was down 1.21 basis points to 1.2477%. The yield on 30-year debt declined 2.56 basis points to 3.0087% at the same time. Meanwhile, in Europe, the yield on 10-year German Bunds plunged 5.1 basis points to 0.408%, while the yield on British gilts of the same maturity dropped 7.7 basis points to 1.176%, as bond yields move in the opposite direction relative to prices.

Baha Breaking News (BBN) / IB