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US Treasury yields rise after major US tax bill is approved

Key Points
  • Over the weekend, Senate Republicans managed to narrowly pass a bill to revamp the country's tax system

U.S. government debt yields rose on Monday, as investors continued to digest the news that the U.S. Senate had narrowly passed a major tax bill over the weekend.

The yield on the benchmark 10-year Treasury note sat higher at around 2.394 percent at 12:28 p.m. ET, while the yield on the 30-year Treasury bond was up at 2.786 percent. Bond yields move inversely to prices.

U.S. Markets Overview: Treasurys chart

In the early hours of Saturday morning, Senate Republicans managed to narrowly pass a bill to revamp the country's tax system. The final vote came out as 51-49 in favor, after Republicans had to rework the bill late on Thursday.

The GOP however still need to overcome future obstacles in order for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.

Politics will also be on the agenda for markets on Monday, after U.S. stocks closed lower on Friday, as investors digested reports surrounding the former national security adviser Michael Flynn.

Switching focus, the Bank for International Settlements (BIS) stated in its latest quarterly financial review that investors should be more concerned about an overheating financial market, during a period where consumer debts are rising to unsustainable levels.

—CNBC's Jacob Pramuk and Sam Meredith contributed to this report