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Treasury yields rise after strong US economic data

  • The yield on the U.S. 2-year note yield hit a high of 1.6230 percent, its highest level since Oct. 30, 2008 when the 2-year yielded as high as 1.632 percent.
  • The yield on the 10-year also hit a high of 2.475 percent, its highest level since March.

U.S. government debt yieldsrose Wednesday after the release of stronger-than-expected economic data.

The yield on the benchmark 10-year Treasury note traded higher at 2.43 percent, while the yield on the 30-year Treasury bond was up at 2.945 percent. Bond yields move inversely to prices.

Earlier, the yield on the U.S. 2-year note yield hit a high of 1.6230 percent, its highest level since Oct. 30, 2008 when the 2-year yielded as high as 1.632 percent. The yield on the 10-year also hit a high of 2.475 percent, its highest level since March.

Symbol
Yield
 
Change
%Change
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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New orders for key U.S.-made capital goods increased more than expected in September and shipments rose for an eighth straight month, according to Reuters.

Orders for durable goods, including items ranging from household appliances to aircraft parts, shot up 2.2 percent last month amid a 5.1 percent rise in demand for transportation equipment. That beat Reuters expectations of a 1 percent increase.

New home sales surged 18.9 percent in September.

After an unexpected plunge in August, sales of new U.S. single-family homes were expected to fall even further in September. Economists surveyed by Thomson Reuters anticipated new home sales falling 0.9 percent in September.

A survey of Reuters economists anticipated new home sales falling 0.9 percent in September.

Looking to the auctions space, the U.S. Treasury sold $34 billion in five-year notes at a high yield of 2.058 percent.

The bid-to-cover ratio, an indicator of demand, was 2.44. Indirect bidders, which include major central banks, were awarded 61.6 percent. Direct bidders, which includes domestic money managers, bought 11 percent.

While no major speeches by the U.S. Federal Reserve are scheduled to take place Wednesday, talk of who will take on the role of Fed chair in early 2018 will remain a key topic of conversation amongst investors.

At present, five people have been named as potential candidates, including current Fed Chair Janet Yellen.

Fed governor Jerome Powell has been reported to be the front-runner in the White House, but the fact that Taylor moved up the list last week and was mentioned as a candidate by the president has kept him in the running.

Taylor got another boost in the market's eyes when the GOP Senate leadership favored him in a show of hands after President Donald Trump asked them who they liked for the job.

CNBC's Gina Francolla contributed to this report.