Treasury yields drop after Trump cancels vote on health care bill

Treasuries rallied, pushing the yields lower after President Trump withdrew the health care bill on Friday as it failed to gain enough support to pass in Congress.

At the time of writing, the yield on the 10-year Treasury note was down 3.4 basis points at 2.366%. The 2-year yield was down 1.2 basis points at 1.236%. 

The 10-year yield trades below 100-DMA level of 2.381%. Meanwhile, the 30-year yield closed below 100-DMA for the first time since October. 

The risk aversion seen this Monday morning is likely to keep the treasuries in demand. Moreover, Trump’s failure in pushing the health care bill has forced investors to question his ability to push forward other legislative measures, including tax cuts and regulatory reforms.