"U.S. Treasury yields edge higher as partial shutdown delays jobs data"

Minseung Kang

Summary

It reported that Treasury yields rose slightly as a U.S. federal government partial shutdown and the delay of key economic data releases took hold.
It said the 10-year U.S. Treasury yield climbed to 4.292% and the 2-year yield to 3.584%, with investors reacting more sensitively to Treasury supply-and-demand and policy-related remarks.
It reported that as the two parties are discussing a compromise to separately handle the Department of Homeland Security budget, the partial shutdown could be resolved as early as this week.

Forecast Trend Report by Period

U.S. Treasury yields edged higher as key economic data releases were postponed while the federal government entered a partial shutdown—an operations halt—amid political confrontation over immigration enforcement policy.

According to Walter Bloomberg, an overseas economic news flash channel, some federal government functions were suspended as President Trump urged Congress to end the shutdown, disrupting the scheduled economic data calendar. As a result, the U.S. January nonfarm payrolls report, originally slated for the 6th, was delayed.

With a data void, market attention shifted to the Treasury market. The 10-year U.S. Treasury yield rose slightly to 4.292%, while the 2-year yield climbed to 3.584%. Investors are proving more sensitive for the time being to Treasury supply-and-demand dynamics and policy-related remarks amid a limited flow of economic indicators.

Still, as the two parties discuss a compromise to separately handle the Department of Homeland Security budget in charge of immigration enforcement, there is also speculation that the partial shutdown could be resolved as early as later this week.