U.S. Treasury Yields Decline Amid Government Shutdown Concerns

U.S. Treasury yields have been declining since the start of trading in the new week, affected by concerns of a looming government shutdown as the deadline approaches for U.S. lawmakers to reach an agreement on a budget plan to fund government activities.

U.S. Congress members have begun discussions aimed at avoiding a government shutdown by agreeing on temporary funding or successfully passing a budget plan to secure permanent funding for the operation of federal government institutions, which must be achieved by next Friday at the latest.

The 10-year U.S. Treasury yield fell to 4.225% compared to the previous Friday’s close of 4.301%. The highest level for these yields was 4.302%, compared to the lowest level during the day at 4.201%.

U.S. President Donald Trump urged members of Congress, which is controlled by Republicans, to pass a bill to bridge the gap, but it is not clear that there are enough votes to pass the proposed legislation this week.