U.S. Treasury yields fell on Tuesday, with no signs of progress resolving the conflict between Republicans and Democrats that shut down the government last week.
10 year old financial yield It fell more than 3 basis points to 4.131%, 30 year bond yield 4.726% was over 3 basis points. 2 year financial yield It weakened by more than 2 basis points, standing at 3.574%.
One basis point equals 0.01%, or 1/100th of a percent, and yield and price are inversely proportional to each other.
Since October 1st, the US government shutdown has continued as lawmakers are unable to reach a funding deal. The standoff also caused an economic data blackout, delaying key reports such as the September jobs report, which was scheduled to be released last Friday.
“The absence of data sets a high bar for the FOMC to delay normalization, but it also makes it difficult for the Fed to change the cadence of cuts,” said Ian Lyngen, head of U.S. rate strategy for BMO Capital Markets FICC Macro strategy.
Investors will hear comments this week from several Federal Reserve officials, including Gov. Stephen Milan on Wednesday and Chairman Jerome Powell on Thursday, for insight on the future direction of monetary policy.
