U.S. government debt prices fell on Wednesday, as investors cheered new economic data that shrugged off recession fears and continue to monitor geopolitical tensions between the United States and China.
The search for safe assets eased slightly overnight, but investors are still following developments in U.S.-China relations after House Speaker Nancy Pelosi spoke with Taiwanese President Tsai Ing-wen. Her trip to Taiwan has drawn much attention, given the vocal opposition from China.
A surprise rebound on Services PMIs and solid factory orders in the morning checked the idea that the U.S. economy is in a recession and sent stocks to session highs.
And, hawkish commentary from multiple regional Federal Reserve bank presidents also bolstered yields. St. Louis Fed President James Bullard told CNBC Wednesday that he doesn’t think the U.S. is in a recession and that the central bank will continue to raise rates to deal with inflation.