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10-year yield dips below 2.4% on concerns over Trump’s policies

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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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U.S. government debt prices rose Wednesday as investors started doubting whether President Donald Trump will deliver tax cuts and infrastructure investment as he promised during his campaign.

People are losing confidence in a swift moving set of congressional reform, said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York.

Trump is facing opposition from lawmakers on his plan to dismantle Obamacare, with any new fiscal stimulus likely to be delayed as the administration prioritizes domestic issues including healthcare.

On Tuesday, the Dow and S&P posted their first 1 percent fall in five months on worries over health care reform in the U.S.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at 2.391 percent. Earlier in the session, the 10-year note hit 2.385 percent, its lowest level since February.

The yield on the 30-year Treasury bond was also lower at 3.007 percent.

Expectations of a less aggressive Fed have added to bond gains this week. Yields have fallen since the U.S. central bank last Wednesday raised interest rates, as expected.

Some investors had anticipated the Fed would also take a more hawkish tone on future rate hikes on expectations of stronger growth.

On the data front, existing home sales data for February showed a decline of 3.7 percent.

In oil markets, Brent crude traded at around $47.99 a barrel on Wednesday, down 0.52 percent, while U.S. crude was around $50.59 a barrel, down 0.73 percent.

—Reuters contributed to this report.