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investors cheer end of government shutdown
U.S. Treasury yields held steady on Thursday as investors welcomed the end of the longest government shutdown in U.S. history.
The 10-year Treasury yield rose more than 2 basis points to 4.108%. The 2-year note yield was also up more than 2 basis points at 3.587%, while the 30-year bond yield climbed more than 3 basis points to 4.70%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Late on Wednesday, President Donald Trump signed into law a funding bill to end the U.S. government shutdown, which lasted a total of 43 days. The measure was passed by the House of Representatives on Wednesday night in a 222-209 vote.
“Republicans never wanted a shutdown,” Trump said. “People were hurt so badly.” He noted that more than 1 million federal workers were furloughed.
During the shutdown, key economic reports were delayed including the consumer price index, producer price index, and the non farm payrolls report.
These reports may never be released, said White House press secretary Karoline Leavitt on Wednesday.
“The Democrats may have permanently damaged the Federal Statistical system with October CPI and jobs reports likely never being released,” Leavitt said. “All of that economic data released will be permanently impaired, leaving our policymakers at the Fed, flying blind at a critical period.”
