By Sunny Oh
Treasury yields across the board tumble
Treasury yields slip Wednesday as political jitters linger from President Donald Trump's dismissal of Federal Bureau of Investigation Director James Comey, drawing a flight to quality from overseas investors.
Treasury yields for the 2-year note lost 5.3 basis points to 1.246%. Bond prices move inversely to yields. The yield for the 10-year note fell 7.2 basis points to 2.257%, while the 30-year bond, or the long bond, lost 6.3 basis points to 2.930%.
A week after Trump fired the FBI director, an old memo from Comey showed Trump asking him to drop an inquiry investigating links between Russia and the White House's ex-national security adviser Michael Flynn. Flynn had resigned over revelations that he discussed with Russian ambassador Sergei Kislyak on the possibility of lifting sanctions on Moscow.
Treasury buying among Japanese and Asian asset managers rose in response to the news.
Analysts have said that the recent controversy doesn't push back the schedule and likelihood of tax reform, which would boost economic growth and inflation, and diminish the returns of bonds' fixed payments.
But a week light on economic data releases might keep traders especially sensitive to a source of geopolitical concern that has refused to go away. "There is very little economic data out this week so external events will play a large role in the market direction," wrote Tom di Galoma, managing director of Treasurys trading at Seaport Global Securities in a note.
(END) Dow Jones Newswires
May 17, 2017 09:28 ET (13:28 GMT)
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