Market Trends & Government Shutdown Impact - The 10-year yield experienced a slight decrease amidst the second day of the federal government's partial shutdown [1] - The bond market is focused on the health of the labor market, as indicated by the ADP data [2] - Weak labor data potentially implies a more aggressive Fed easing [2] Bond Yields & Technical Analysis - The lowest 10-year yield close since the Fed eased on the 17th is 409% [4] - A close below virtually 400% in early April for the 10-year yield would bring in more buying, pushing yields lower [4] Fed Funds Futures & Interest Rate Expectations - Fed fund futures for the October meeting decreased from 101% to 95%, indicating a slight reduction in the intensity of expectations for a rate cut [3] Currency Market - The dollar index is firming, showing a different trend compared to the yield charts [5] - A close above 99 for the dollar index would be considered technically significant [5]
Yield curve flattens and dollar index firms following key ADP report
CNBC Television·2025-10-02 18:51