Treasury Yields Remain Steady Amid Ongoing U.S. Government Shutdown
U.S. Treasury Yields: Yields on U.S. Treasurys remained mostly unchanged as investors await resolution on the ongoing government shutdown, with the 10-year yield at 4.14% and the 2-year yield at 3.595%.
Government Shutdown Impact: The shutdown, now in its ninth day, has led to a blackout of official economic data, delaying important labor market reports, while the Senate rejected funding bills that could end the impasse.
Federal Reserve Insights: Minutes from the Federal Reserve's recent meeting revealed a consensus on lowering interest rates, but disagreement on the number of cuts moving forward, with a 95% chance of a rate cut in October according to market pricing.
Investor Sentiment: Traders are monitoring the demand for government debt amid rising fiscal deficits and the shutdown, with a recent 10-year auction indicating stable investor appetite.
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