U.S. Government Shutdown Fuels Treasury Yield Surge Amid Market Uncertainty

The U.S. government shutdown is entering its second week, contributing to a rise in Treasury yields as market uncertainty escalates. Long-term yields have experienced significant increases, reflecting the delayed release of vital economic data, including the crucial non-farm payroll report that was initially scheduled for last week. Last week’s released employment data presented mixed results. 💰 This week, investors are closely monitoring the Federal Reserve’s meeting minutes, anticipated to be released on Wednesday, as they seek insights into potential interest rate adjustments. 📊 Analysts at Deutsche Bank suggest the upcoming Treasury bond auctions on Wednesday and Thursday may serve as a significant indicator of market demand for current government policies and the Federal Reserve’s actions.