22.08.201720:21:00UTC+00Investors Shed Bonds as Safe-Haven Demand Eases

Treasury yields advanced on Tuesday as investors in the U.S. bond market released their government paper holdings and other assets that are seen as a safe-haven and flocked to stocks after a news report indicated that the White House and Congress have progressed in creating a more concrete plan for a tax revamp.

Yield on the 10-year Treasury yield advanced 3.3 basis points to 2.215 percent. Meanwhile, the 30-year bond yield edged up 2.4 basis points to 2.789 percent. The two-year Treasury note yield rose 2.4 basis points to 1.326 percent.

U.S. government bonds has weathered a bout of selloffs, driving yields up, following a report by Politico that President Donald Trump's tax plans were back on track, reviving hopes of those who still believe Trump can roll out his pro-growth agenda, expectations for which has significantly fallen as Trump continues to be entangled with political drama since his election win. The reflation trade wages on the new administration's capability to bolster growth and inflation, is bearish for the Treasury market.

As investors' risk-appetite is revived, safe haven assets such as gold, the yen and Treasuries have seen modest selling pressure.