U.S. Treasury yields were little changed on Tuesday as investors continued to monitor the government shutdown and growing optimism for a resolution.
The 10-year Treasury yield dropped less than 1 basis point to 3.98%. The 2-year Treasury note yield fell less than 1 basis point as well to 3.463%, as did the 30-year bond yield to 4.57%.
One basis point is equals to 0.01% and yields move inversely to prices.
Investors are continuing to monitor the government shutdown after White House National Economic Council Director Kevin Hassett said that it’s “likely to end sometime this week,” and the Trump administration is prepared to take firmer measures to force an end to the shutdown if no deal is reached.
“Now there’s a shot that this week, things will come together, and very quickly,” Hassett told CNBC’s “Squawk Box” on Monday. “The moderate Democrats will move forward and get us an open government, at which point we could negotiate whatever policies they want to negotiate with regular order.”
The shutdown has resulted in an economic data blackout. However, the consumer price index will be released on Friday, after being postponed, and will be a key metric on the state of inflation ahead of the Federal Reserve’s interest rate decision next week.
Meanwhile, fears of escalating trade tensions between the U.S. and China have been assuaged after President Donald Trump said on Monday that he expects to reach a fair deal with Beijing after his upcoming meeting with Chinese President Xi Jinping later this month in South Korea.
