2017.11.1600:54:00UTC+00Treasury Yields Slide as Stocks Slump

U.S. Treasury prices rallied, driving yields lower, as global equities slump amid a retreat across commodity prices, stoking new doubts regarding consumer prices and inflation's ability to return to normal levels.

The two-year Treasury note yield edged down by 1.8 basis points at 1.671 percent against the 1.689 percent on Tuesday. Meanwhile, the 10-year Treasury yield pared 4.1 basis points to 2.340 percent from 2.381 percent. The yield on the long bond or the 30-year Treasury yield, edging down by 0.4 basis point at 2.799 percent against the 2.839 percent in the prior session.

The slide in oil prices weighed down the broader commodity complex, underlining persistent doubts regarding inflation resurging to the Federal Reserve's 2 percent target. Weak levels of inflation and wage growth has affected longer-dated government paper, more affected by the inflation outlook, as rising prices can erode bonds' fixed value. Investors will be waiting for fresh indicators of inflation.

Meanwhile, bond traders are also waiting on updates regarding the Trump administration's planned tax overhaul, a development that has been a key driver in the Treasury market. House Speaker Paul Ryan is anticipated to make an appearance on CNBC where he is expected to talk about the efforts by Republicans to pass a tax code revamp proposal.