The U.S. bond market was closed Tuesday for the Veteran’s day holiday.
Yields rose in the previous session as investors grew optimistic about the U.S. government shutdown ending.
The Senate passed legislation Monday evening that would fund the government through January. The bill will now be sent to the House of Representatives, and if it passes in that chamber, it will then be headed to President Donald Trump’s desk to be signed into law, effectively ending the U.S.’s longest-ever shutdown.
This comes after the Senate late Sunday passed a procedural vote to move the deal forward, backed by 60 senators after eight Democrats crossed party lines.
The shutdown has stalled major economic data releases, including last week’s jobs report and this week’s scheduled inflation figures. In the absence of official data, investors and officials have turned to limited private-sector indicators for guidance.
A risk-on tone contributed to a modest cheapening in Treasuries as stocks rallied on hopes that the U.S. government shutdown could come to an end as soon as this week, said Ian Lyngen, managing director and head of U.S. rates strategy in the BMO Capital Markets’ fixed income strategy team.
