Second-quarter GDP data revised to 3.0% from 3.1%
Treasurys traded in a narrow range on Thursday, with some of the selling, which had pushed yields higher a day earlier, subsiding as investors raised doubts about President Donald Trump's tax plan.
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In the past, bond investors have been skeptical of prospects for tax legislation. But after more concrete details were unveiled, Treasurys saw selling pressure on Wednesday (http://www.marketwatch.com/story/treasurys-extend-selloff-as-trumps-tax-plan-weighs-on-government-bonds-2017-09-28). Nonetheless, analysts feel there are plenty of potential stumbling blocks that could prevent Trump's proposals from coming to fruition
What are bond yields doing?
The benchmark 10-year Treasury yield was virtually unchanged at 2.309%, after hitting an 11-week intraday high earlier. In the course of Thursday, the 10-year yield pushed above its 200-day moving average, a key technical charting level which could signal a further rise is imminent, before slipping below the gauge.
The shorter-dated 2-year note yield erased the previous session's gains, falling to 1.455% from 1.483%. While, the 30-year bond yield rose around a basis point to 2.870%. Bond yields move in the opposite direction of prices.
What do the skeptics of tax reform say?
"The involvement of the House GOP leaders adds an air of legitimacy to the effort, although that alone does very little to make goals of the tax plan any more politically obtainable," wrote Ian Lyngen and Aaron Kohli, fixed-income strategists at BMO Capital Markets.
How about the optimists?
"Momentum for tax cuts is growing for at least two reasons. First, after the latest failure to repeal the Affordable Care Act, Republicans are desperate for a legislative achievement. Second, Senate Republicans have shown openness to a budget resolution that would increase the budget deficit by $1.5 trillion over ten years," said analysts at Oxford Economics.
What else is moving markets?
An auction for 7-year Treasury notes attracted strong appetite from investors, helping to reverse the morning selloff. Sales of government debt can influence trading of outstanding debt.
What did Fed speakers say?
What data came out?
(END) Dow Jones Newswires
September 28, 2017 17:00 ET (21:00 GMT)