Treasury yields rise as investors weigh Trump's megabill

U.S. Treasury yields rose on Wednesday as investors weighed the impact of President Donald Trump's tax-and-spending package, which narrowly passed the Senate on Tuesday.

The 10-year yield rose more than 3 basis points to 4.285%. The 30-year bond yield was also up more than 3 basis points at 4.817%. The 2-year note yield climbed more than 1 basis point to 3.789%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Trump's megabill cleared the Senate on Tuesday with a final vote of 51-50. The legislation now has to go through the House, where there are still some holdouts from Republican lawmakers.

The bill is expected to add $3.3 trillion to the fiscal deficit over the next decade, and some Republican lawmakers continue to show resistance to the bill. Trump has insisted that he wants the bill on his desk by July 4.

“We expect to see more volatility in fixed income, even once they get the bill passed, whatever that looks like,” said Jose Rasco, CIO of HSBC Global Private Banking and Wealth Management Americas, on “Closing Bell: Overtime.”

“Once these things get resolved and once the [Federal Reserve] gets back in gear, there's a lot of upside here,” Rasco said.

Investors are also waiting to see more negotiations on trade deals as Trump's 90-day pause on some of the highest tariffs are due to expire next week.

On the economic data front, investors will await the nonfarm payrolls report for June on Thursday. The bond market will be closed on Friday for Independence Day.