Treasury yields drop as Trump trade unwinds

Treasury yields dropped on Tuesday after President-elect Donald Trump expressed concerns regarding strong dollar and criticized Republican border-tax plan.

The yield on the 10-year Treasury note dropped 5.2 basis points (bps) to 2.327%. The 2-year Treasury note declined 3.7 bps to 1.135%.

Treasury yields have been steadily losing height since December Fed rate hike. Moreover, markets had run ahead of themselves while anticipating higher growth/inflation under Trump Presidency.

Investors now turn their attention to the US consumer price index release and Yellen speech.