U.S. Treasury Supply Well Absorbed Amid Federal Reserve Shutdown

According to a report by Société Générale's rate strategists, despite the U.S. government being in a shutdown, the market's focus remains on the supply of U.S. Treasuries, which has been well absorbed by the market. They noted that U.S. Treasury yields have been trading within a narrow range, while swap spreads have continued to widen. Data from Tradeweb shows that U.S. Treasury yields declined during the Asian trading session, with the two-year Treasury yield falling by 1.2 basis points to 3.586%; the ten-year and thirty-year Treasury yields both dropped by 1.9 basis points, to 4.128% and 4.714%, respectively. (Jin10)