US Shutdown... How Can This Impact Yields?

A U.S. shutdown doesn’t just freeze Washington — it shakes Wall Street. Investors rush into Treasuries for safety, pulling long-term yields down, while missing data and fiscal fears can push short-term yields up. The curve bends under politics, not just economics, turning every extra day of gridlock into fresh market uncertainty.

The 10-year U.S. Treasury yield recently fell ~4.3 basis points to about 4.145 % amid safe-haven demand ahead of a possible shutdown.

The curve has shown signs of steepening: longer maturities have been under more pressure (yields up) relative to short maturities.