The 10-year Treasury yield was relatively unchanged as investors assessed the growing risk of a potential federal government shutdown.The benchmark 10-year Treasury yield was higher by less than a basis point at 4.148%, while the 2-year Treasury yield fell more than 2 basis points to 3.612%. The 30-year Treasury yield rose by more than 2 basis points to 4.73%.One basis point is 0.01%, and yields and prices move in opposite directions.A federal government shutdown seemed increasingly likely after top Democrats and Republicans met with President Donald Trump at the White House on Monday."I think we're heading for a shutdown because the Democrats won't do the right thing," Vice President JD Vance told reporters after the meeting, held less than two days before funding is set to run out."Full government shutdowns have historically been temporarily modestly positive for Treasuries and have had a mixed impact on equities," Eastspring Investments said in a daily note.The week's main event is the September nonfarm payrolls report, set for release Friday morning by the Bureau of Labor Statistics. Economists expect 59,000 jobs to be added, with unemployment holding at 4.3%, according to FactSet. Some analysts caution a negative print is still possible.The data could shape the Federal Reserve's next moves, with traders pricing in two more interest-rate cuts before the year-end, consistent with the central bank's latest guidance.However, there's a chance the upcoming jobs report might not actually be released on Friday, as the Labor Department has said that it won't release economic data if the government were to shut down."Rates markets are likely to view the government shutdown through the lens of the effect on the economic outlook and uncertainty around key data releases, rather than the financial or funding risk lens via which they look at a debt limit impasse," said Pooja Sriram, U.S. economist at Barclays. "We believe developments are biased towards an easier path of Fed policy."
10-year Treasury yield is little changed on U.S. shutdown concerns
A federal government shutdown seemed increasingly likely after top Democrats and Republicans met with President Donald Trump at the White House on Monday.






