FX.co ★ Treasury Yields Fall

On Monday, the yield on the US 10-year Treasury note declined to under 4.22%, marking its lowest point in almost two weeks. This drop reflects growing concerns about a potential government shutdown after Democratic leaders threatened to halt a $1.2 trillion funding package if it includes further allocations for Homeland Security. These concerns were heightened by another shooting incident involving a US citizen in Minnesota. Additionally, investors are keenly anticipating the Federal Reserve’s initial monetary policy decision of the year, set for Wednesday. Although the consensus expects a pause in rate changes, traders will be keenly observing the Fed’s economic outlook and comments on future interest rate policies. Moreover, there is speculation that the announcement of the next Fed chair could happen as early as this week.