US 10-Year Yield Rises as Govt Shutdown Ends
The US 10-Year Treasury yield rose to 4.09% after President Trump signed a short-term funding bill, ending the longest government shutdown. The House approved the measure 222-209. The shutdown's end allows for delayed economic reports, although some data may not be released. Markets now see a 60% chance of a 25-basis-point Fed rate cut in December, down from 67%. ADP data showed private employers cut about 11,250 jobs weekly in October, raising labor market concerns. The recent 10-year note auction showed a slight tail.
The yield on the US 10-Year Treasury note climbed about 3 basis points to 4.09% on Thursday after President Donald Trump signed a short-term funding bill into law, ending the longest US government shutdown in history.
The House of Representatives had approved the measure earlier in the session by a 222-209 vote.
The shutdown’s conclusion also clears the way for a backlog of economic reports, though the White House said on Wednesday that October’s jobs and CPI data may never be released.
On monetary policy, markets currently price in roughly a 60% chance of a 25-basis-point Federal Reserve rate cut in December, down from about 67% a day earlier.
Earlier this week, ADP data indicated private employers cut around 11,250 jobs per week in the four weeks to October, raising labor market concerns.
Meanwhile, the auction for the new 10-year note experienced a slight tail.
