NEW YORK — US Treasury prices fell on Wednesday, pushing yields to multi-week highs, as investors grew concerned about growing disagreements on the Trump administration’s tax cut and budget legislation currently in Congress.
Benchmark US 10-year Treasury note yields hit a six-week high, punching through a key 4.5 percent support level. It was last up 3.7 basis points (bps) at 4.536 percent.
On the front end of the curve, the two-year yield, which typically moves in step with interest rate expectations, rose 4.2 bps to 4.059 percent, after earlier touching its highest since late March.
Republicans in the US Congress on Wednesday advanced elements of President Donald Trump’s sweeping budget package after a debate that lasted through the night, as a key committee voted along party lines to approve tax cuts that would add trillions of dollars to the US debt.
The House of Representatives Ways and Means Committee approved the first version of the tax cut bill, but a clearer picture of the size of future budget deficits depends on discussions of spending and potentially steep cuts to the Medicaid health program.
