2017.12.0722:44:00UTC+00U.S. Yields Rally on Confidence Government Shutdown May be Averted

Treasury prices fell, driving yields up after top Republicans assured that the Congress would stop a federal government shutdown.

The benchmark 10-year Treasury note yield increased 4.5 basis points to 2.374 percent. Meanwhile, the 30-year Treasury bond yield rose 3.5 basis points to 2.772 percent. The two-year note yield was mostly flat at 1.806 percent.

Top GOP officials said that they would avert a government shutdown by adopting a short-term bill. Without new funding, the federal government would have insufficient money by midnight Friday. House Speaker Paul Ryan expressed his confidence that the funding measure would be passed, according to a Reuters report.

Investors who flocked to safe-haven Treasuries earlier in the day over the prospect of a shutdown returned to risky assets like stocks. All three benchmark U.S. indexes rose on Thursday.