U.S. government debt prices traded lower on Wednesday morning but investors are still monitoring geopolitical tensions between the United States and China.At around 3:40 am ET, the yield on the benchmark 10-year Treasury note moved higher to 2.7574% and the yield on the 30-year Treasury bond also rose to 3.0138%. Yields move inversely to prices.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.On the data front, there will be Services PMIs at 9:45 a.m. ET and factory orders are due at 10 a.m. ET. Both data points will be important for investors as they track the slowdown of the U.S. economy.In terms of key speeches, Philadelphia Fed President Patrick Harker is addressing an audience at 10 a.m. ET and Richmond Fed President Tom Barkin as well at 11:45 a.m. ET.
U.S. Treasury yields move higher ahead of new economic data.