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Bond prices higher after Tillerson meets with Russia and 30-yr bond auction

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U.S. government debt prices were higher on Wednesday after U.S. Secretary of State Rex Tillerson met with Russian officials in Moscow.

Tillerson visited Moscow on Wednesday and received a barrage of criticism from several Russian officials.

Ahead of a meeting with Tillerson, Russian Foreign Minister Sergey Lavrov said that he wanted to know what the real intentions of the U.S. administration are, following its missile strikes in Syria. Tillerson said in a news conference Wednesday that U.S.-Russia relations are at a "low point" and need to improve. "The world's two foremost nuclear powers cannot have this kind of relationship," Tillerson said.

Tillerson said during the news conference Wednesday that U.S.-Russia relations are at a "low point" and need to improve. "The world's two foremost nuclear powers cannot have this kind of relationship," Tillerson said.

President Donald Trump also said he was undecided about Federal Reserve Chair Janet Yellen in a Wall Street Journal report.

"I like her, I respect her," Trump said, according to a WSJ published Wednesday. "It's very early."

Previously Trump has been critical of Yellen and previously said it was unlikely he would re-appoint her.

The Treasury Department auctioned $12 billion in 30-year bonds at a high yield of 2.938 percent. The bid-to-cover ratio, an indicator of demand, was 2.23.

Indirect bidders, which include major central banks, were awarded 64.5 percent. Direct bidders, which includes domestic money managers, bought 5.8 percent.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.264 percent, while the yield on the 30-year Treasury bond was lower at 2.906 percent following the auction. The two-year note yield was lower at 1.214 percent.

On the data front, import prices posted their biggest drop in seven months in March, falling 0.2 percent. Export prices, meanwhile, gained 0.2 percent last month.

In oil markets, Brent crude traded at around $55.66 a barrel on Tuesday, up 1.01 percent, while U.S. crude was around $52.91 a barrel, up 0.92 percent.