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(Bloomberg) -- Treasuries slumped and U.S. stocks slid in pre-holiday period trading as Republicans staged the first key vote on a sweeping tax overhaul. The yen rose slightly versus the dollar.

The S&P 500 Index retreated for the first time in three days as the U.S. House of Representatives voted to approve the tax bill. But they’ll have to vote again Wednesday because the current draft doesn’t comply with Senate rules.

With the Republicans closing in on a legislative victory that would give corporations lasting tax cuts, investors are assessing how the bill will impact the world’s largest economy. It’s largely anticipated to add to growth in the next year, but the longer-term impact is less certain. 

Longer-dated U.S. bonds endured their steepest two-day selloff in a year. The dollar was mixed versus major peers.

Equity markets were mixed in Europe. The region’s core bonds declined, with German yields seeing their biggest gains in more than five months after a European Central Bank Governing Council member said discussions were moving to the future use of interest rates rather than asset purchases to regulate the economy.

The Mexican peso dropped to its weakest in more than a month after a news report alleged that the nation’s Finance Ministry has funneled money to political campaigns. Oil traded above $57 a barrel before U.S. data forecast to show crude stockpiles in the world’s biggest consumer fell for a fifth week. Gold and copper also rose.

It was a mixed picture for equities in Asia, with benchmarks in Japan and South Korea falling earlier as stocks in Sydney, Hong Kong and China climbed. 

Terminal users can read more in our live markets blog.

Among the key events investors will be watching this week:

  • The U.S. and U.K. publish updated estimates of third-quarter GDP.
  • The Bank of Japan meets on Thursday to set monetary policy.
  • Catalonia’s secessionists are at risk of becoming a minority in the Spanish region’s parliament as the main pro-unity party is set to add seats in Thursday’s election.

And these are the main moves in markets:

Stocks

  • The S&P 500 Index declined 0.3 percent Tuesday.
  • The Stoxx Europe 600 Index dipped 0.4 percent.
  • The U.K.’s FTSE 100 Index gained 0.1 percent.
  • Germany’s DAX Index sank 0.7 percent.
  • The MSCI Emerging Market Index increased 0.2 percent.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1 percent.
  • The euro climbed 0.5 percent to $1.184.
  • The British pound rose less than 0.05 percent to $1.3386.
  • The Japanese yen rose less than 0.05 percent to 112.88 per dollar.
  • The Mexican peso fell 0.7 percent to 19.2108 per dollar.

Bonds

  • The yield on 10-year Treasuries advanced seven basis points to 2.46 percent, the highest in nine months.
  • Germany’s 10-year yield climbed seven basis points to 0.38 percent, the highest in more than two weeks.
  • Britain’s 10-year yield advanced six basis points to 1.205 percent.

Commodities

  • West Texas Intermediate crude advanced 0.4 percent to $57.46 a barrel.
  • Gold fell less than 0.1 percent to $1,261.61 an ounce.
  • Copper rose 0.5 percent to $6,942 a metric ton, the highest in more than three weeks.

--With assistance from Brian Chappatta David Wilson and Boris Korby

To contact the reporters on this story: Cormac Mullen in Dublin at cmullen9@bloomberg.net, Kailey Leinz in New York at kleinz1@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn

©2017 Bloomberg L.P.

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