Dow Jones – US government bonds gained ground as investors assessed the impact of a Republican plan to overhaul the US tax code.
The yield on the benchmark 10-year U.S. Treasury note fell to 2.347%, the lowest close in two weeks, from 2.378% Wednesday. Bond yields fall as prices rise.
Bond yields had risen last week as investors speculated that Republicans would propose measures that were stimulative to the economy, and which would lead to significantly larger budget deficits. The plan, as detailed Thursday, would slice the top corporate tax rate to 20% from 35%.