U.S. Treasury yields were relatively unchanged on Monday as investors weighed the state of the U.S. economy and the government shutdown entered its fourth week.
The 10-year Treasury yield was less than a basis point lower at 4.001%. The 2-year Treasury note yield was little changed at 3.464%. The 30-year bond yield fell more than a basis point to 4.592%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
The U.S. government shutdown has entered its fourth week as Republican and Democrat lawmakers have repeatedly failed to reach a compromise on the federal budget. The shutdown has stopped the release of economic data including regular reports like the weekly initial jobless claims.
This week will see the delayed CPI print for September, published on Friday, which will offer insights into the health of the economy ahead of the FOMC meeting next week.
“Investors seem non-plussed so far, but many economists are raising concerns that a prolonged shutdown may impact quarterly GDP growth,” Katie Nixon, chief investment officer at Northern Trust, said in a note to clients. “Most acknowledge, however, that this would represent a temporary slowdown that would likely be followed by a catch-up period.”
Meanwhile, investors are optimistic that trade tensions between the U.S. and China are calming as the threat of additional 100% tariff on Chinese imports beginning Nov. 1 appeared less likely.
U.S. Treasury Secretary Scott Bessent said on Friday he expects to meet this week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of U.S. tariffs on Chinese goods that President Donald Trump said was unsustainable.
