2017.08.1800:07:00UTC+00Treasury Yields Retreat on Disappointing Data, Political Woes

Treasury yields declined, driving up prices on Thursday after a lackluster reading for industrial output and news that economic adviser Gary Cohn could leave President Donald Trump's administration aided in drawing modest demand for U.S. government bonds.

The yield on the ten-year Treasury note declined by 2.6 basis points to 2.197 percent. Meanwhile, the two-year Treasury note's yield fell 2.4 basis points to 1.306 percent. The 30-year bond's yield declined by the same value, falling 2.4 basis points to 2.782.

Yields retreated across the board after a report showed industrial-production for July rose by 0.2 percent, marking its sixth consecutive month of gains . But it disappointed economists who expected 0.3 percent.

Reports that Gary Cohn would step down as Trump's economic adviser further pushed down yields. Investors priced in the report as one of many signs that the rollout of the president's pro-growth agenda could be further postponed.Weak prospects for the U.S. economy can be bullish for Treasuries.

But the speculation was rejected by a White House official and said Cohen would stay in his post in the administration, Reuters reported.