NEW YORK: US Treasuries were steady on Friday as investors waited on a highly anticipated vote in Washington on healthcare reform, which is being seen as an indicator of whether the Trump administration will be able to pass fiscal stimulus.
US Republican lawmakers struggling to overcome differences over new healthcare legislation confronted a stark choice after President Donald Trump delivered an ultimatum: pass the bill on Friday or keep Obamacare in place.
Delays in passing domestic legislation, including healthcare, are seen as likely to push back any new fiscal stimulus, which investors had anticipated would boost growth and possibly spur a quicker pace of interest-rate hikes.
"This is being seen as a good litmus test of the rest of Trump's agenda," said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.
Benchmark 10-year notes were unchanged in price to yield 2.42 percent.
The 10-year yields fell to 2.375 percent on Wednesday, their lowest since Feb. 28. They are down from a three-month high of 2.63 percent on March 14.
Speeches by Federal Reserve officials on Friday will also be in focus for investors hoping for clues on when the US central bank is next likely to raise interest rates.
Investors have lowered expectations for a more aggressive Federal Reserve as doubts about the pace of change in Washington increase.
The US central bank raised interest rates last week as expected but took a more dovish tone on future hikes than some investors had anticipated.
The US central bank should begin allowing its massive portfolio to run off, even as it keeps its target policy rate low to maintain inflation and unemployment at current levels, St. Louis Federal Reserve Bank President James Bullard said on Friday.
New York Fed President William Dudley is due to speak later on Friday.
Data on Friday showed that new orders for key US-made capital goods unexpectedly fell in February, but a surge in shipments amid demand for machinery and electrical equipment supported expectations for an acceleration in business investment in the first quarter.
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