10-Year Treasury Yield Dips Amid Weak Auction Demand and Government Reopening Progress
The 10-year Treasury yield fell 4.8 basis points to 4.062% following a $42 billion note auction that tailed by 0.6 bps, signaling tepid demand. The high yield of 4.074% exceeded the when-issued yield, reflecting investor hesitation.
Progress toward a government reopening bill has buoyed markets, with the House poised to approve funding through January 30. President Trump's expected endorsement would end the shutdown and resume critical economic data releases—though WHITE House warnings about delayed CPI and jobs reports may sustain demand for haven assets.
Treasuries remain in focus as labor market fragility predating the shutdown amplifies uncertainty. The auction's weak tail underscores a cautious stance among fixed-income investors navigating fiscal crosscurrents.
