FX.co ★ US 10-Year Yield Muted as Govt Shutdown Looms

On Wednesday, the 10-year US Treasury note maintained its yield around 4.15%, influenced by the uncertainty surrounding an imminent government shutdown. Absent a temporary funding agreement, the shutdown is set to commence at midnight, with Republicans and Democrats exchanging blame over the deadlock. Market participants are vigilantly monitoring the potential duration of such a closure, as a prolonged halt could delay critical economic data releases before the Federal Reserve's policy meeting at the end of October—with particular focus on Friday's nonfarm payroll figures. This situation has shifted attention to the ADP private payroll report expected later today. Additionally, Tuesday's mixed results from the JOLTS data impacted the dollar, revealing a minor increase in job openings but weaker hiring figures for August, aligning with indications of a slowing labor market.