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US Treasurys higher as President Trump makes markets nervous

U.S. government debt prices rose on Wednesday on concerns over U.S. President Trump involvement in an FBI investigation.

NBC News confirmed Tuesday a report from The New York Times that former FBI Director James Comey put together a memo outlining a conversation in which President Donald Trump allegedly asked him to halt an investigation into Michael Flynn, the former national security adviser.

Later on Tuesday, House Oversight Committee Chairman Jason Chaffetz asked the FBI for any records it has on communications between Trump and Comey.

The yield on the 10-year Treasury notes, which moves inversely to price, was lower at around 2.219 percent, while the yield on the 30-year Treasury bond was also lower at 2.899.

Investors in search for safety rushed to the yen, sending the dollar to a six-month low.

President Donald Trump in the Oval Office at the White House on May 10, 2017 in Washington, DC.
Getty Images
President Donald Trump in the Oval Office at the White House on May 10, 2017 in Washington, DC.

The scandals are seen as distracting lawmakers from passing legislation that investors
had hoped would help boost economic growth. "The more focus there is on

"The more focus there is on the headlines, the less there is on the stuff that the market really
cares about, which is fiscal stimulus, tax reform, regulatory reform, any of those issues," said Aaron Kohli, an interest rate strategist at BMO Capital Markets in New York.

"Within a news cycle, where the constant din of scandal keeps legislators from focusing on the actual matters at hand, it becomes very hard to marshal support for big sweeping changes," Kohli added.

In oil markets, Brent crude traded at around $52.21 a barrel on Wednesday, up 1.08 percent, while U.S. crude was around $49.07 a barrel, up 0.84 percent.

—Reuters contributed to this report.