FX.co ★ US 10-Year Yield Eases

The yield on the 10-year US Treasury note decreased to approximately 4.16% on Monday, reversing some of last week's gains. This change was influenced by the looming threat of a government shutdown, which weighed on investor sentiment, and anticipation of crucial economic data. If Congress doesn't pass a funding bill by the end of the fiscal year on Tuesday, parts of the government will close on Wednesday. However, President Donald Trump is scheduled to meet with congressional leaders today in an effort to prevent the shutdown. Investors are also focusing on upcoming labor market indicators, including September’s nonfarm payrolls report, job openings, private payroll figures, and the ISM manufacturing PMI. Robust economic data from the US last week have tempered expectations for significant Federal Reserve rate cuts, with the market now predicting around 40 basis points of easing by the end of the year.