of 10 year treasury Yields remained relatively unchanged on Monday, the longest on record, as the U.S. government shutdown enters its fourth week.
The benchmark yield rose less than 1 basis point to 4.107%. The two-year Treasury yield fell less than 1 basis point to 3.598%. The yield on the 30-year Treasury note rose more than 1 basis point to 4.683%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Investors are closely monitoring the government shutdown, which has now reached 34 days, just one day less than the longest shutdown of 35 days, which lasted from December 22, 2018 to January 25, 2019.
“One of the key events this week is that the current U.S. government shutdown will officially become the longest in history by midnight tomorrow, assuming a near-term resolution is very low,” Deutsche Bank analysts said in a note.
“This would exceed the previous record of 35 days, which ended on January 25, 2019. Increased bipartisan dialogue, growing public pressure, and economic and political considerations have increased speculation that we may be nearing the final stages of the shutdown,” they added.
Investors are turning a blind eye to economic data as the government shutdown delays the release of several reports, including Friday’s U.S. monthly jobs report. Instead, they will look to Wednesday’s ADP private payroll report for clues about the state of the U.S. economy.
On Monday, the Institute for Supply Management reported that the ISM Manufacturing Business Index for October came in at 48.7%, lower than expected. This was lower than the Dow Jones forecast of 49.3% and down 0.4 percentage points from September.
Fed officials acknowledged the uncertainty associated with the lack of major economic reports. Federal Reserve President Lisa Cook said on Monday that she was unsure whether the central bank would vote to cut interest rates in December.
The comments, made during President Donald Trump’s first policy speech since he tried to fire Cook, came less than a week after Fed Chairman Jerome Powell said a December interest rate cut was “not a foregone conclusion,” comments that roiled markets.
A key event this week is also the U.S. Supreme Court hearing on the legality of President Donald Trump’s tariffs.
