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More than a week after the U.S. government’s partial shutdown began on Oct. 1, bond-market traders were starting to express a greater degree of concern about the economic fallout.
Roughly a quarter of a million federal workers missed paychecks this week and another 2 million are expected to miss them next week if the shutdown continues, said Chris Low, chief economist at FHN Financial in New York, citing
a report from Bloomberg. In addition, the Trump administration has reportedly begun substantial layoffs of government employees, according to NBC News.
The 10-year yield fell below its recent trading range of between 4.07% to 4.17%, and was, at one point, down by as much as 10.3 basis points at a session low of 4.04%. Before the yield touched Friday’s intraday low, Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, cited the continued void in U.S. economic data that exists because of the shutdown, and said that “we are trending toward the bottom of that range on lots of uncertainty.”
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