US Treasury debt yields fell on Thursday as investors fretted about the lack of clarity in the Trump administration's policies and doubted whether its proposed reforms would have as big an impact as many initially thought they would. "There are more questions being raised in general across all markets about how deeply or quickly the new administration would have an impact on the economy," said Dominic Pappalardo, director of taxable portfolio management at McDonnell Investment Management in Oakbrook Terrace, Illinois.
Benchmark US 10-year yields hit two-week lows, while those of 30-year bonds slid for a fifth straight session. US two-year yields traded lower for a second straight day.
US Treasury Secretary Steven Mnuchin spoke on Thursday, saying he wants to see a major tax plan passed before Congress by August, but he failed to give details about it.
Investors were also skeptical about that timetable.
"I don't think anybody who seriously thinks about the mechanics of passing laws in this country would think a major sweeping tax reform introduced in March could be signed, sealed, and delivered by August," said Tom Simons, money market economist at Jefferies in New York.
In afternoon trading, US 10-year notes were last up 10/32 in price, yielding 2.382 percent, compared with 2.418 percent late Wednesday. Yields fell as low as 2.379 percent, their weakest level since February 9.
US 30-year bond prices rose 10/32, yielding 3.021 percent, down from Wednesday's 3.036 percent.
US two-year note prices were up 2/32, yielding 1.192 percent, down from Wednesday's 1.224 percent. Pappalardo said he was not too worried about the decline in rates over the past week.
"People still expect rates to go higher. But I think the pace of those expectations may have slowed down a little bit," he said. Atlanta Federal Reserve Bank President Dennis Lockhart on Thursday joined a chorus of Fed officials who believe the Fed could raise rates next month.
His comments had little impact though as he is expected to retire next week. A generally decent US 7-year note auction totalling $28 billion added to the market's bid tone. The note had a high yield of 2.197 percent, slightly higher than the expected rate of 2.196 percent at the bid deadline.
Bids totaled $69.7 billion for a 2.49 cover, better than last month's 2.45, but below the 2.51 average. Indirect bidders, consisting of central banks, accepted 63.8 percent, lower than January's record 72.8 percent, but higher than the 64.3 percent average.