U.S. Treasury yields are little changed as investors assess the growing risk of a potential federal government shutdown, while also looking ahead to the Job Openings and Labor Turnover Survey (JOLTs) report.
The 10-year Treasury yield was lower by one basis point to 4.13%, while the 2-year Treasury yield fell over 2 basis points to 3.61%. The 30-year Treasury yield was little changed at 4.71%.
One basis point is 0.01%, and yields and prices move in opposite directions.
A federal government shutdown seemed increasingly likely after top Democrats and Republicans met with President Donald Trump at the White House on Monday.
“I think we’re heading for a shutdown because the Democrats won’t do the right thing,” Vice President JD Vance told reporters after the meeting, held less than two days before funding is set to run out.
“Full government shutdowns have historically been temporarily modestly positive for Treasuries and have had a mixed impact on equities,” Eastspring Investments said in a daily note.
Investors are also eyeing Tuesday’s Job Openings and Labor Turnover Survey (JOLTs).
The week’s main event is the September nonfarm payrolls report, set for release Friday morning by the Bureau of Labor Statistics. Economists expect 59,000 jobs to be added, with unemployment holding at 4.3%, according to FactSet. Some analysts caution a negative print is still possible.
The data could shape the Federal Reserve’s next moves, with traders pricing in two more interest-rate cuts before the year-end, consistent with the central bank’s latest guidance.
