Top Stories
Top Stories

Treasury yields rise after UK leader May's Brexit vote defeat

U.S. government debt yields rose on Wednesday as traders digested news of the defeat of U.K. Prime Minister Theresa May's Brexit deal.

The yield on the benchmark 10-year Treasury note rose to 2.72 percent, while the yield on the 30-year Treasury bond fell to 3.06 percent. Bond yields move inversely to prices.

May suffered a huge defeat in Parliament on Tuesday, which saw her Brexit deal voted down by 230 votes, which has been reported to be the highest margin of defeat for any sitting government in U.K. political history.

The prime minister told Parliament's lower chamber that her Conservative government "will listen" to lawmakers' concerns over the deal following the vote. The government will make a statement in the Parliament on Jan. 21, where she is expected to present a "plan B" for the divorce agreement.

Jeremy Corbyn, the leader of the opposition Labour Party, tabled a motion of no-confidence in the government, which will be debated and voted on Wednesday. Sterling gained 0.1 percent against the dollar during morning trade, last changing hands at $1.2871.

In political news stateside, the partial U.S. government shutdown — the longest in history — has entered its 26th day. A political stalemate between the Democrats and the Trump administration over funding for President Trump's proposed border wall has shown no signs of abating.

Traders and financial professionals work ahead of the opening bell on the floor of the New York Stock Exchange.
Drew Angerer | Getty Images

Over in Asia, China's central bank on Wednesday made its biggest daily net cash injection through reverse repo operations, totaling $82.73 billion. That news arrived after comments from China's state planner and its Premier Li Keqiang hinted the country would commit further stimulus amid worries of a slowdown in the world's second-largest economy.

Trade will likely be another area of focus, after Sen. Chuck Grassley said U.S. Trade Representative Robert Lighthizer had seen little progress in last week's talks with China. The U.S.-China trade war has seen both countries slap new duties on billions of dollars' worth of each other's imported goods.

U.S. and Chinese officials met last week for negotiations over trade that Trump said were "going very well." Washington and Beijing agreed late last year to a 90-day trade truce during which they will hold off on increasing tariffs in the hope that a deal is struck.