U.S. government debt prices fell on Thursday following remarks made by President Donald Trump about taxes.
In a meeting with U.S. airline executives, Trump said "we're going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax."
"That added to the bearish price action that was already in place.. .it was more contributing to the negative tone that was in place. His comments were worth about two basis points," said Ian Lyngen, head of US rates strategy at BMO. "People were talking about it," he said, but added that it provided no detail and therefore not much clarity for the markets.
The yield on the benchmark 10-year Treasury note extended gains after Trump's remarks, trading at 2.398 percent, while the yield on the 30-year Treasury bond was also higher at 3.013 percent. Yields move inversely to prices.
The Treasury Department auctioned $15 billion of 30-year bonds at a high yield of 3.005 percent.
Indirect bidders, which include major central banks, were awarded 66.2 percent. Direct bidders, which includes domestic money managers, bought 4.9 percent. The bid-to-cover was 2.25