U.S. Treasury yields edged higher on Wednesday as investors assessed President Donald Trump's State of the Union address, which largely focused on the economy.
The benchmark 10-year Treasury yield rose less than 2 basis points to 4.05%. The 30-year Treasury bond yield advanced less than a basis point to 4.694%. The 2-year Treasury note yield also added less than 2 basis points, climbing to 3.471%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors reacted somewhat to Trump's State of the Union on Tuesday, which focused on the economy and clocked in at almost two hours, a record.
During the speech, the president said that the economy is "roaring like never before" and said inflation was "plummeting." He called for the creation of a government-backed 401(k)- type pension plan for U.S. workers who don't have a retirement plan through their employers.
Trump also called on Congress to pass legislation that would prevent institutional investors from buying up single-family homes.
Investors will now shift their attention to economic data coming later in the week, including weekly initial jobless claims on Thursday and the January producer price index on Friday.
Traders also weighed new supply coming into the bond market. The Treasury Department sold $70 billion in 5-year notes, a sale that was met with low demand. The bid-to-cover ratio for the auction was the lowest since July.
Geopolitical tensions are also in focus, with investors monitoring developments between the U.S. and Iran. Investors largely shrugged off Trump's latest tariff decision, with the new levy going into effect at a lower-than-expected 10% rate on Tuesday.