benchmark 10 year treasury Yields rose on Monday as investors hoped for an end to the historic government shutdown that has frozen the federal government for nearly six weeks.
The yield on the 10-year note rose more than 1 basis point to 4.108%, and the yield on the 2-year note rose more than 2 basis points to 3.582%. The yield on the 30-year Treasury note rose less than 1 basis point to 4.703%.
One basis point equals 0.01%, or 1/100th of a percent, and yield and price are inversely proportional to each other.
Investors are keeping an eye on Monday’s government shutdown as Republican and Democratic lawmakers appear to be moving closer to crafting a funding bill to end the shutdown that began Oct. 1.
The Senate passed the first phase of the deal to lift the shutdown late Sunday night, after a procedural measure was approved by 60 votes and eight Democrats switched to supporting the deal.
The final deal would fund the U.S. government through the end of January but does not include Democrats’ demands to extend enhanced tax credits from the Affordable Care Act that are set to expire at the end of December.
Any agreement must be approved by the House of Representatives and signed by President Trump.
In the absence of key economic reports from federal agencies, including the monthly jobs report that wasn’t released last week and the Consumer Price Index and Producer Price Index numbers expected this week, investors and policymakers alike are operating blind, relying on less comprehensive private surveys.
