Benchmark U.S. government debt yields slid to six-week lows on a flight to safety bid and the dollar weakened further on Wednesday as investors assess how a conviction and a guilty plea of two former advisers impact U.S. President Donald Trump.
A gauge of global equities rose, lifted by higher energy prices and strong earnings from retailers in a session that marked the longest U.S. bull market. It came a day after the S&P 500 stock index set an all-time high.
U.S. Treasuries yields also fell as contentious trade talks between U.S. and Chinese officials were set to resume on Wednesday and as investors looked to minutes from the Federal Reserve’s August meeting due later in the session.
“Beyond the political uncertainty associated with what’s going on in Washington, there are broader macroeconomic concerns resulting from on-again, off-again trade tensions and of course where the Fed stands on this,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York.