Bond Market Commentary

Over in bond land, markets are closed for Veteran’s Day. Meanwhile, a reading of small business optimism decreased slightly more than expected in October.

Treasury yields were higher on Monday following hopes of a resolution to the ongoing government shutdown as a compromise was reached in the Senate. The yield on the 10-year note was up two basis points (0.02%) to 4.12%, while the 30-year bond yield rose one basis point (0.01%) to 4.71%. The yield on the two-year note increased three basis points (0.03%) to 3.59%.

On the data front, the National Federation of Independent Business’s gauge of small business optimism decreased to 98.2 in October from the prior month’s 98.8.

In the central bank space, Federal Reserve Governor Michael Barr is scheduled to speak today.

The Bloomberg 30-day visible supply rose $454 million to $8.904 billion on Monday, below the 12-month average of $13.782 billion.

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