Bond Bulls See Opportunity as Government Shutdown Deadline Nears

  • Congress has to pass spending deal or stopgap by April 28
  • 10-year yield may target 2% on any prolonged impasse, BMO says

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With days to spare before Congress has to reach a deal to keep the U.S. government running, bond traders see a potential showdown breathing new life into the Treasury market’s rally.

Assuming France’s presidential election doesn’t roil markets, the April 28 deadline for Congress to at least pass a stopgap spending measure and avert a government shutdown looks set to take center stage this week, with the calendar mostly devoid of major economic data or Federal Reserve speakers.