Treasury prices rose, pulling yields lower, on Friday after the Senate tax bill hit snags, delaying a floor vote that had been expected a day earlier.
What are yields doing?
Continue Reading Below
The 10-year benchmark note yield fell 3.7 basis points to 2.380%. The 2-year Treasury note yield was barely unchanged at 1.778% The 30-year bond yield shed 5.6 basis points to 2.781%,
Bond prices move in the opposite direction of yields.
What's driving Treasurys?
Senate Republicans had to delay their tax vote as they will need to overcome a parliamentary hurdle and mollify Republican deficit hawks, after the nonpartisan Joint Committee on Taxation said the bill would widen budget deficit by around $1 trillion over a decade. The 11th-hour hiccup has drawn concerns over the viability of the current version of the Senate tax cuts. But a final vote could still come Friday.
See: Here's what's next for the Senate's tax bill (http://www.marketwatch.com/story/heres-whats-next-for-the-senates-tax-bill-2017-11-30)
A new bill that was closer to becoming deficit-neutral would allay concerns that the Treasury Department will have to increase the size of their debt auctions, weighing on bond prices.
Read: Ron Johnson reportedly to vote for tax bill (http://www.marketwatch.com/story/ron-johnson-reportedly-to-vote-for-tax-bill-2017-12-01)
What did market participants say?
"In classic Washington style, the Senate tax reform bill has shifted from a forgone conclusion to an open question--to put it diplomatically. The issue comes down to the fact that the tax cuts won't pay for themselves," wrote Ian Lyngen and Aaron Kohli, fixed-income strategists for BMO Capital Markets.
What else is on investors' radar?
The Institute for Supply Management will publish their November reading for their manufacturing composite index, a measure of nationwide industrial activity, at 10 a.m. Eastern. Economists surveyed by MarketWatch forecast 58. Construction spending is expected to rise 0.4% in October.
Investors will look forward to a busy docket of speakers from the Federal Reserve. Dallas Fed President Robert Kaplan will take part in a moderated Q&A at 9:30 a.m. Eastern. St. Louis Fed President James Bullard is set to speak at 9:05 a.m. Philadelphia Fed President Patrick Harker will talk at 10:15 a.m.
(END) Dow Jones Newswires
December 01, 2017 09:57 ET (14:57 GMT)