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28.11.201722:28:00UTC+00Treasury Prices Fall after Poor Reception to Latest Auction

U.S. government bond prices declined on Tuesday, driving up yields, with the weakness mostly faulted to a poorly received auction of seven-year notes and worries over federal budget negotiations.

The ten-year Treasury note increased 1.1 basis points to 2.338 percent, meanwhile, the two-year note edged up 1.4 basis points to 1.758 percent. The yield on the 30-year Treasury bond rose 0.2 basis points to 2.767 percent.

There are several factors affecting the bond market. A sale of $28 billion in seven year Treasury notes received weak demand.

Meanwhile, top congressional Democrats boycotted a meeting with President Donald Trump after he tweeted that he did not perceive prospects for an agreement on government spending. The Trump administration faces a December 8 budget deadline.

Federal Governor Jerome Powell, Trump's nominee to take Federal Reserve Chairwoman Janet Yellen's place at the central bank when her term ends in February, made no waves in a Senate confirmation hearing. Powell sent a message of continuity to follow a path of gradual rate hikes and a slow tapering of central bank's balance sheet that was outlined by Yellen.

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