US 10-Year Yield Edges Higher

The yield on the 10-year US Treasury note climbed to around 4.14% on Monday, extending gains from the prior session as investors evaluated the economic fallout from the ongoing government shutdown after lawmakers again failed to reach a funding deal.

The closure has suspended key federal operations and delayed major economic data releases, including September’s jobs report originally scheduled for Friday.

On the policy front, recent data reinforced expectations for Federal Reserve rate cuts, with markets nearly fully pricing in a quarter-point cut this month and another in December.

Traders now await fresh commentary from central bank officials this week for further direction, including remarks from Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday.