Treasury yields are flat as investors wait to see how long government shutdown lasts

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U.S. Treasury yields were little changed on Wednesday as investors monitored the consequences of the government shutdown after lawmakers failed to reach an agreement on the federal funding bill.

The 10-year Treasury yield was basically flat at 4.14%, and the 2-year Treasury yield lost 1 basis point to 3.594%. The 30-year bond yield rose just over one basis point to 4.7447%. One basis point equals 0.01% and yields and prices have an inverse relationship.

The U.S. government shut down after the Republican-controlled Senate failed to reach an agreement on the temporary spending bill on Tuesday. Democrats have been aiming to include an extension of health care tax credits for millions of Americans within the spending bill, which Republicans disagreed on.

The lawmakers are now blaming each other for the shutdown. Trump has criticized the Democrats, saying that “I didn’t see them bend even a little bit” in negotiations. The president has also threatened permanent layoffs during the shutdown, adding a new risk to this stoppage for this economy.