FX.co ★ US 10-Year Yield Rises as Govt Shutdown Ends

The yield on the US 10-Year Treasury note rose by approximately 3 basis points, reaching 4.09% on Thursday, following President Donald Trump's signing of a short-term funding bill that put an end to the longest government shutdown in US history. Earlier, the House of Representatives had passed the measure with a 222-209 vote. With the shutdown now over, economic reports that were delayed can move forward; however, the White House indicated on Wednesday that the October jobs and CPI data might not be released. In terms of monetary policy, the market currently estimates about a 60% probability of a 25-basis-point interest rate cut by the Federal Reserve this December, which is a slight decrease from the roughly 67% probability seen the previous day. Earlier this week, ADP released data showing that private employers cut around 11,250 jobs per week over the four weeks leading up to October, stirring concerns about the labor market. Additionally, the auction for the new 10-year note was met with a modest tail.