Bonds

Treasury yields edge lower after Trump remarks on border wall, NAFTA

Key Points
  • At a rally in Phoenix, Trump said he would keep his campaign promise of building a border wall even "if we have to close down our government."
  • Trump also said he doubts a renegotiation of the North American Free Trade Agreement is possible.
  • Trump's remarks came after the administration has faced a couple of turbulent weeks due to a shakeup in staff and comments made Trump following the violent protests in Charlottesville, Virginia.

Treasury yields fell slightly on Wednesday as investors digested remarks from President Donald Trump.

The yield on the benchmark 10-year Treasury note traded at 2.18 percent at 2:19 p.m. ET, while the yield on the two-year note was lower at 1.313 percent. Bond yields move inversely to prices.

At a rally in Phoenix, Trump said he would keep his campaign promise of building a border wall even "if we have to close down our government." Trump also said he doubts a renegotiation of the North American Free Trade Agreement is possible.

Trump's remarks came after the administration has faced a couple of turbulent weeks due to a shakeup in staff and comments made Trump following the violent protests in Charlottesville, Virginia.

Treasurys


Investors also kept an eye on key economic data ahead of an important monetary policy symposium at Jackson Hole later on this week.

On the data front, new home sales fell 9.4 percent in July and hit a seven-month low.

On the central bank front, European Central Bank President Mario Draghi spoke in Germany on Wednesday, stating that modifications to monetary policy were "never easy", yet didn't provide much information on the future steps in monetary policy for the region.

Meanwhile, Dallas Fed President Robert Kaplan is set to speak at the Permian Basin Petroleum Association Membership Luncheon in Midland, Texas on Wednesday.

This speech comes just before the meeting of central bankers later this week at Jackson Hole.

At the event, Federal Reserve Chair Janet Yellen and ECB President Mario Draghi are both set to speak, with investors watching the event closely for any indications when it comes to monetary policy outlook.

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