NEW YORK, March 28 (Reuters) - Yields on U.S. Treasury Inflation Protected Securities hovered above one-month lows on Tuesday as traders speculate on U.S. President Trump and Republican lawmakers’ plan on tax reform and its impact on economic growth.
TIPS yields have fallen in recent days on concerns about their pledge on fiscal stimulus especially tax cuts will not happen as soon as they had hoped for.
Their worries were exacerbated after top Republicans pulled the vote on healthcare reform bill in the House of Representatives on Friday as they struggled to cobble enough votes to pass it.
The yield on five-year TIPS was -0.158 percent, down 1 basis point from late on Monday, while 10-year TIPS yield was 1 basis point lower at 0.391 percent.
On Monday, five-year TIPS yield reached a one-month low of -0.177 percent and 10-year TIPS yield hit a one-month low of 0.366 percent, according to Tradeweb. (Reporting by Richard Leong)