By Gertrude Chavez-Dreyfuss
U.S. Treasuries were modestly bid on Monday, with yields edging lower and trading held within tight ranges amid improving risk sentiment as the China trade outlook appeared less dire than it did weeks earlier.
Investors remained broadly cautious, however, as the federal government stayed shuttered for a 20th consecutive day, with no real compromise expected from either Republicans or Democrats.
But White House economic adviser Kevin Hassett said on Monday the shutdown could likely end this week. He said his “friends in the Senate” believed it was “bad optics for Democrats to open the government before the ‘No Kings’ rallies and that now there’s a shot that this week things will come together.”
In morning trading, the benchmark 10-year yield slipped 1.2 basis points (bps) to 3.999% US10Y, while 30-year bond yields drifted lower to 4.583% (US30YT=RR).
On the shorter end of the curve, U.S. two-year…
