2017.03.2215:20:00UTC+00Treasuries Extend Upward Trend Ahead Of Obamacare Repeal Vote

Treasuries moved to the upside during trading on Wednesday, extending the upward trend seen over the past several sessions.

After showing a strong upward move in early trading, bond prices gave back some ground but remained firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4 basis points to 2.396 percent.

With the decrease on the day, the ten-year yield closed lower for the sixth time in seven sessions, hitting its lowest closing level in almost a month.

Treasuries continued to benefit from concerns about President Donald Trump's ability to implement his policy agenda amid uncertainty about the Republican plan to repeal and replace Obamacare.

The latest reports suggest House Republicans may not have the votes to pass their healthcare plan in a vote expected to be held on Thursday.

The Republican plan faces an even tougher uphill climb in the Senate, raising concerns about what the GOP can accomplish even with a unified government.

If the healthcare bill fails, it could imperil other Trump policies such as tax reform and increased infrastructure spending.

On the U.S. economic front, the National Association of Realtors released a report showing bigger than expected pullback in existing home sales in the month of February.

NAR said existing home sales tumbled by 3.7 percent to an annual rate of 5.48 million in February after jumping by 3.3 percent to a rate of 5.69 million in January. Economists had expected sales to drop to 5.58 million.

The bigger than expected decrease came after existing home sales surged up to their highest rate in almost ten years in the previous month.

Traders are likely to keep an eye on Capitol Hill on Thursday, as the House is expected vote on the Republican healthcare bill.

Reports on weekly jobless claims and new home sales may also attract attention along with remarks by Federal Reserve Chair Janet Yellen and Minneapolis Fed President Neel Kashkari.