The shutdown commenced hours after the Senate rejected a short-term spending measure that would have kept government operations afloat through November 21.
Tuesday’s economic figures from the single currency bloc failed to trigger price action in the sovereign bond markets.
Germany’s 10-year Bund yields, the bloc’s benchmark, were roughly unchanged at 2.02%.
Data showed on Wednesday that euro zone inflation accelerated last month, likely reinforcing bets on the European Central Bank keeping interest rates on hold for some time.
“The figures are still compatible with the ECB Staff Projections foreseeing a further slowdown in core inflation to 2.2% and headline to 2.0% in the fourth quarter,” said Giada Giani, economist at Citi. “We still expect inflation to slow more meaningfully…
