U.S. Treasury yields: U.S. government shuts down
Treasury returns fell on Wednesday after the new data showed a surprise decline in special payrolls, while the merchants followed the results of the closure of the government after the deputies could not reach an agreement on the federal financing bill.
The 10 -year Treasury return was traded with a decrease of 4.094%to 5 basis points. The 30 -year bond return received more than 3 points to 4,698%. One point is equal to 0.01% and the yields and prices have an inverse relationship.
According to ADP, private payrolls decreased by 32,000 in September. Economists who participated in the survey by Dow Jones were expecting 45,000 increase. August payrolls were also revised to show 3,000 losses. Initially, the data increased by 54,000.
The monthly version of the ADP took greater importance on Wednesday after the closure of a US government that delayed the publication of the September US job report.
The US government was closed because it could not reach an agreement on the temporary expenditure bill of the Senate under the control of the Republic. The Democrats aim to expand health tax loans for millions of Americans in the bill of expenditure that Republicans do not agree with.
President Donald Trump criticized the democrats by saying, “I haven’t seen a little twisted” in the negotiations. He threatened to dismiss permanently during the closure and added a new risk to this stop for this economy.
Milken Institute Chief Economist William Lee, in the interview with “World -WORLD CHANGE” interview, had little influence on the real economy, because at the end of the closing, everything goes as it is. ” He said.
“But this time there may be some major changes, because both sides are very strategic. ‘This is a good time to implement the changes that Elon Musk has done with Dogge.’
If the closure is dragged, the US debt may increase fears about the credit quality of the debt, which can reach treasury prices and increase returns. In May, Moody said that “the policy activity or the power of the institutions will be eroded to a degree that weakens the domestic credit profile of the sovereign. JPMorgan Traders said that closing to customers this week is a possible” queue risk “.
