US Treasurys rise after Trump criticizes House Republicans' tax plan

Bond traders at CME Group
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U.S. government debt prices were higher on Tuesday as investors geared up for President-elect Donald Trump's inauguration on Friday.

In an interview with The Wall Street Journal, Trump criticized a proposed corporate tax plan from the House of Representatives, noting the plan is "too complicated."

"As the border adjustment tax is supposed to 'pay for' about half the cut in the corporate income tax, what will this mean for where the corporate tax rate will ultimately end up if it is not part of the bigger package? I wish for once there was discussions about cuts in spending to pay for it but I have not heard any talk about that," said Peter Boockvar, chief market analyst at The Lindsey Group.

Treasurys had been largely selling off dramatically since Trump won the U.S. presidency, as investors anticipated more government spending, lower corporate taxes and deregulation of certain sectors.


Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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The yield on the benchmark 10-year Treasury note was lower at 2.327 percent, while the yield on the 30-year Treasury bond was also lower at 2.931 percent. Yields move inversely to prices.

Trump's remarks also took a bite out of the U.S. dollar, which fell 0. 8 percent against a basket of currencies.

On the data front, the January Empire State Manufacturing index came in positive.