U.S. Treasuries slump as Republicans expect tax reform bill effective this week

The U.S. Treasuries slumped Monday after top Republicans said on Sunday they expected Congress to pass a tax code overhaul this week, with a Senate vote as early as Tuesday and President Donald Trump aiming to sign the bill by week’s end.

The yield on the benchmark 10-year Treasuries climbed nearly 2 basis points to 2.37 percent, the super-long 30-year bond yields rose 1 basis point to 2.70 percent and the yield on the short-term 2-year traded 1-1/2 basis points higher at 1.85 percent by 10:45GMT.

Top US Republicans said on Sunday they expected Congress to pass a tax code overhaul this week, with a Senate vote as early as Tuesday and President Donald Trump aiming to sign the bill by week’s end, reports said.

John Cornyn, the No. 2 US Senate Republican, said in an interview on ABC’s “This Week” that he was “confident” the Senate would pass the legislation, “probably on Tuesday.”

Republican Representative Kevin Brady said he believed his party had the votes to pass the bill. “I think we are headed—the American people are headed—for a big win on Tuesday,” Brady, the House of Representatives’ top tax writer, said on Fox News’ “Sunday Morning Futures with Maria Bartiromo.”

Meanwhile, the S&P 500 Futures traded 0.34 percent higher at 2,690.75 by 10:50GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -24.06 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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