The U.S. bond market was closed on Tuesday for the Veterans Day holiday.
Yields rose in premarket trading as investors grew more optimistic about the end of the U.S. government shutdown.
The Senate passed a bill Monday night that would fund the government through January. The bill will now go to the House of Representatives, where, if passed, it will then be sent to President Donald Trump’s desk to be signed, effectively ending the longest government shutdown in U.S. history.
This came after eight Democrats, along party lines, passed a procedural vote late Sunday in the Senate to advance the deal with the support of 60 senators.
The government shutdown has delayed the release of key economic indicators, including last week’s employment report and this week’s expected inflation rate. In the absence of official data, investors and officials are looking to a limited number of private sector metrics for guidance.
Ian Lingen, managing director and head of U.S. rates strategy in the fixed income strategy team at BMO Capital Markets, said a risk-on trend contributed to a modest decline in U.S. Treasuries as stocks rose on expectations that the U.S. government shutdown would end as early as this week.
