27.11.201723:20:00UTC+00Treasury Prices Rally as Senate GOP Starts Push for Tax Bill

U.S. government prices increased, causing yields to fall as Senate Republicans launch this week's push to pass their version of the tax bill.

The benchmark 10-year Treasury note declined by 1.4 basis points to 2.382 percent. Meanwhile, the two-year note yield fell 0.7 basis points to 1.777 percent. The 30-year bond yield was steady at 2.765 percent.

With the House pushing for its own version of the tax plan, the Senate Republicans have kicked off their efforts to put their own bill to vote by the end of the week. However, with only a narrow majority in the Senate, there are worries that defections from the GOP could dash the bill have raised skepticism. According to a source on Monday, Montana Republican Senator Steve Daines was against the current terms of the tax legislation.

A deficit-funded tax cut is seen to drive a rally in Treasury yields, as the federal government will need to bolster the size of U.S. government debt auctions. The U.S. bond market can be affected by big sales of government paper.